The US dollar recovered some losses against a basket of major currencies after it became known that the US and China decided to extend the talks for another day. It improved investors’ sentiment and gave a signal that countries could resolve their disagreements soon. The dollar index (#DX) closed yesterday in the positive zone (+0.26%). Also, financial market participants expect the statement by Donald Trump regarding the future work of the US government.
It became known that the British government had planned a vote of the House of Commons concerning the Brexit bill on January 15. If the bill is not supported, the UK may remain without an agreement at all and the process of a soft Brexit will be undecided. Today, the attention of financial market participants is focused on the Bank of Canada meeting, as well as the publication of the FOMC minutes. It is expected that the Central Bank of Canada will keep the key marks of monetary policy at the same level.
The “black gold” prices are growing in the hope of a breakthrough in trade relations between the US and China. At the moment, futures for the WTI crude oil are testing the mark of $50.25 per barrel. At 17:30 (GMT+2:00), a report on crude oil inventories will be published in the US.
Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.94%), #DIA (+1.09%), #QQQ (+0.90%).
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The 10-year US government bonds yield is recovering. Currently, the indicator is at the level of 2.71-2.72%.
– Bank of Canada interest rate decision at 17:00 (GMT+2:00);
– FOMC meeting minutes at 21:00 (GMT+2:00).
We also recommend paying attention to the speech by the Bank of England Governor Carney.