The USD Index Is In the Green

EUR is weakened against the USD after the ECB meeting. Yesterday the Bank of Europe kept the fundamental parameters of the monetary policy without changes, as the investors expected. However, Mario Draghi, the Head of the ECB, stated that they had adjusted their economic growth prospects for the end of 2018 and 2019 to the worse. Now the ECB expects the GDP growth for 2018 to reach only 1.8%, instead of September’s 2%. The prospects for 2019 also reach only 1.7% instead of 1.8%. Draghi gives the worse demand for the exported goods as the reasoning for the adjustments. The risks are also increased by the geopolitical factors, the threat of protectionism and the financial market volatility.

USD is strengthened against the other currencies. Yesterday a report was published on the number of initial claims for unemployment benefits. The indicator lowered to 206K while the experts expected 226K. The USD index (#DX) closed in the green (+0.04%). Today we expect important reports from the EU and the US.

Some reports from Japan and China were also published during the Asian trading session today. The Tankan Big Manufacturing Outlook Index (Q4) in Japan grew to 19 instead of 17, while the Tankan Large NonManufacturers Index (Q4) rose to 24 instead of 21. The growth of manufacturing volume in China slowed to 5.4% (YtY) which is worse than the expected 5.9%.

The prices on oil are lowering after the previous growth. The WTI futures are testing the 52.25 USD/barrel mark. At 20:00 (GMT +2:00) Baker Hughes will publish a report on the Total Oil Rig Count in the US.

Market indicators

Yesterday the US stock market had a variety of trends: #SPY (0,03%), #DIA (+0,16%), #QQQ (+0,03%).

The 10year US Treasury bonds yield is at 2.882.89%.

• Manufacturing PMI (GER)10:30 (GMT+2:00);
• Several Business Activity Reports (EU)11:00 (GMT+2:00);
• Retail Sales Report (US)15:30 (GMT+2:00).

by JustMarkets, 2018.12.14