The US Dollar Index Has Moved Away from Local Highs

Last week, the Reserve Bank of Australia, Bank of Canada and the ECB meetings were held. Regulators, as expected, kept key interest rates unchanged. The ECB lowered its forecast for the growth of the Eurozone economy in 20192020, and also announced the resumption of targeted longerterm refinancing operations (TLTRO). These events caused aggressive sales of the euro to lows since June 2017.

On Friday, the US dollar weakened against a basket of major currencies after the publication of ambiguous economic data. The number of building permits increased to 1.345M in January instead of 1.289M. Nonfarm employment change increased by only 20K in February, while experts expected 181K. This indicator shows a slowdown in economic growth in the country. At the same time, the unemployment rate fell to 3.8% in February instead of the forecasted 3.9%. Average hourly earnings increased by 0.4% compared with market expectations at 0.3%. The dollar index (#DX) closed the trading session in the negative zone (0.37%).

Important economic reports are expected this week. Today, investors are focused on the US retail sales report. Also, US President, Donald Trump, should submit a draft budget for 2020, which was postponed due to the shutdown of the US government’s work. UK Parliament vote on Brexit deal will be held tomorrow. If the project is not accepted, then the Brexit delay will most likely be considered.

The “black gold” prices are rising after a decline the day before. At the moment, futures for the WTI crude oil have approached $56.70 per barrel.

Market Indicators

On Friday, there was bearish sentiment in the US stock market: #SPY (0.20%), #DIA (0.04%), #QQQ (0.15%).

At the moment, the 10year US government bonds yield is at the level of 2.652.66%.

Retail sales in the US at 14:30 (GMT+2:00).

by JustMarkets, 2019.03.11