Dollar Index Has Updated Local Highs

Mixed economic statistics from the US were published yesterday. Thus, building permits issued in March counted to 1.353M, while investors expected 1.300M. However, the number of initial jobless claims increased and counted to 5.245K instead of the forecasted 5.105K. Philadelphia Fed manufacturing index fell in April and counted to -56.6 instead of -30.0. At the same time, the US dollar rose again relative to a basket of major currencies. The US dollar index (#DX) closed in the positive zone (+0.61).

US President Donald Trump's optimistic mood has supported the US currency. So, the official believes that, despite the difficult situation, it is time to return to the usual economic activity. According to him, a long suspension of activity cannot be long-term. "To preserve the health of our citizens we must also preserve the health and functioning of our economy," Trump said. "We are not opening all at once, but one careful step at a time. And some states will be able to open up sooner than others."

Meanwhile, the ECB President, Christine Lagarde, told the International Monetary Fund that the European Central Bank was bracing for a "large contraction" in the Eurozone economy. Eurozone economic data show an unprecedented decline, indicating a significant reduction in GDP, as well as a deterioration in the situation on labor markets.

Today, weak economic data from China have been published during the Asian trading session. So, GDP (YoY) fell by 6.8% in the first quarter, while experts expected a decrease by 6.5%. At the same time, industrial production decreased by 1.1% instead of the forecasted decrease by 7.3%.

There are aggressive sales in the "black gold" market. Currently, futures for the WTI crude oil are testing the $18.20 mark per barrel. At 20:00 (GMT+3:00), Baker Hughes US rig count will be published.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+0.48%), #DIA (+0.11%), #QQQ (+1.82%).

The 10-year US government bonds yield increased slightly. At the moment, the indicator is at the level of 0.63-0.64%.

The news feed on 2020.04.17:
  • - Eurozone consumer price index at 12:00 (GMT+3:00).

by JustForex, 2020.04.17

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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