Central Banks Are in the Spotlight

During yesterday's trading session, the US dollar did not change a lot against a basket of major currencies. The dollar index (#DX) closed without changes (+0.00%). Investors are still focused on coronavirus in China. The death toll from pneumonia rose to 17 on Thursday with nearly 600 confirmed cases. Investors again drew attention to “safe haven” currencies amid this news.

The Bank of Canada decided on the key interest rate yesterday. As experts forecasted, the indicator remained unchanged at 1.75% per annum. At the same time, the regulator signaled a possible reduction in rates in the future. Today, we expect the ECB interest rate decision. We recommend paying attention to the comments by representatives of the Central Bank.

The demand for the Australian dollar has grown. During the Asian trading session, optimistic economic data have been published in Australia. Thus, the level of employment rose to 28.9K in December instead of 15.0K. The unemployment rate counted to only 5.1% and was below the forecasted value of 5.2%.

The "black gold" prices are declining. Currently, futures for the WTI crude oil are testing the $55.80 mark per barrel. At 18:00 (GMT+2:00), US crude oil inventories will be published.

Market Indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (+0.01%), #DIA (-0.01%), #QQQ (+0.26%).

The 10-year US government bonds yield show negative dynamics. At the moment, the indicator is at the level of 1.74-1.75%.

The Economic News Feed for 23.01.2020:
  • - ECB interest rate decision at 14:45 (GMT+2:00);
  • - Initial jobless claims in the US at 15:30 (GMT+2:00).

by JustForex, 2020.01.23

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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