The Demand for USD Remains. The Bank of England Meeting is in the Spotlight

Yesterday USD kept fortifying its positions against the basket of other currencies. The USD index (#DX) updated the local maximums and closed in the positive zone (+0.35%) The financial market participants are waiting for the next round of the US/China negotiations. Next week, the US Secretary of Treasury Steven Mnuchin and trading representative Robert Lighthizer. If the conflict is not resolved until March 1, the US will increase the import fees for the Chinese wares from 10% to 25%.

The New Zealand dollar is weakened after the publication of the weak labour market report. The employment level fell in the 4th quarter by 0.1% while the investors were expecting 0.3%. The unemployment level grew to 4.3% instead of 4.1%. The NZD is still under pressure after the comments by RBA.

Today the attention will be on the UK inflation report, as well as the Bank of England decision regarding the key interest rate. It is expected that the regulator will keep the key parameters of monetary policy without any changes. You should keep an eye on the Central Bank rhetorics and comments.

The price on oil started to descend. Right now the WTI futures are testing the 53.75 USD/barrel mark.

Market Indicators

Yesterday the US stock market was in a bearish mood: #SPY (-0,13%), #DIA (-0,04%), #QQQ (-0,30%).

The US Treasury bonds 10-year yield is at the 2.68-2.69% level.

The Economic News Feed for 07.02.2019:
  • - Bank of England decision on key interest rate – 14:00 (GMT+2:00);
  • - Number of primary unemployment benefits` applications in US – 15:30 (GMT+2:00).

by JustForex, 2019.02.07

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.

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