The US Dollar Is in the Green. Investors Expect Economic Data

The US dollar rose against a basket of major currencies after the publication of optimistic economic data. Thus, the core retail sales index rose in June by 0.4%, which turned out to be better than the forecasted value of 0.1%. Retail sales also increased in June by 0.4% instead of 0.1%. The US dollar index (#DX) closed yesterday in the positive zone (+0.51%).

Meanwhile, the Fed’s Chairman Powell gave a speech yesterday at the 75th anniversary of the Bretton Woods institutions and said that the regulator was closely monitoring the development of the US economy and was ready to take appropriate measures at any time to support its growth. "Uncertainties about this outlook have increased, however, particularly regarding trade developments and global growth," Powell said, referring to the Fed’s baseline scenario for growth to "remain solid."

The British pound remains under pressure amid concerns about the likely "hard" Brexit. It should be recalled that candidates for prime minister Jeremy Hunt and Boris Johnson opposed the Irish backstop, which makes it more likely that the UK will leave the EU without a deal on October 31. Also, ambiguous economic data put pressure on the pound. Thus, the average level of wages with premiums increased in May by 3.4% instead of 3.1%. However, the number jobless claims rose in June to 38.0K, while experts predicted 18.9K.

The euro is falling against the US dollar due to weak economic data from Germany. Thus, the economic sentiment index from ZEW decreased in July by 24.5 instead of 22.1.

The "black gold" prices are rising after lowering the day before. At the moment, futures for WTI crude oil are testing the mark of $57.95 per barrel. At 17:30 (GMT+3:00) crude oil inventories will be published.

Market Indicators

Yesterday, the bearish sentiment was observed in the US stock markets: #SPY (-0.35%), #DIA (-0.07%), #QQQ (-0.52%).

The yield on 10-year US government bonds fell slightly. At the moment, the indicator is at the level of 2.10-2.11%.

- The UK consumer price index at 11:30 (GMT+3:00);
- The consumer price index in the eurozone at 12:00 (GMT+3:00);
- Statistics on the real estate market in the United States at 15:30 (GMT+3:00);
- The basic consumer price index in Canada at 15:30 (GMT+3:00);
- Fed’s "Beige Book" at 21:00 (GMT+3:00).

by JustMarkets, 2019.07.17

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.