The US dollar strengthened significantly against the euro, the pound and a number of commodity currencies amid low trading volumes during the holidays. The dollar index (#DX) closed yesterday in the positive zone (+0.72%). The demand for safe-haven currency has grown significantly. Financial markets participants are concerned about the slowdown in global economic growth, as well as uncertainty in financial markets.
China published weak data on economic activity in the manufacturing sector of the country. Also, investors expect information on how soon the US government will work again. It should be recalled that the work of the US government was suspended at the insistence of the US President Donald Trump, who demanded to start building a wall on the border with Mexico.
The British pound weakened against the US dollar due to concerns about Brexit. In the British Parliament, there are still disagreements regarding the terms of the Brexit deal on the Irish border. By the end of January, a vote on the bill offered by Theresa May should take place.
The "black gold" prices slightly decreased after a sharp rally the day before. At the moment, futures for the WTI crude oil are testing the mark of $45.75 per barrel.
Yesterday, major US stock indices closed in the positive zone: #SPY (+0.10%), #DIA (+0.07%), #QQQ (+0.40%).
Currently, the 10-year US government bonds yield is at the level of 2.62-2.63%.
- The index of economic activity in the UK construction sector at 11:30 (GMT+2:00);
- ADP nonfarm employment change in the US at 15:15 (GMT+2:00);
- Initial jobless claims in the US at 15:30 (GMT+2:00);
- ISM manufacturing PMI in the US at 17:00 (GMT+2:00).
by 2019.01.03, We advise you to get acquainted with the daily forecasts for the major currency pairs.
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.