The latest economic releases from the United States confirm the words by Fed Chairman, Jerome Powell, that the regulator has taken a wait-and-see attitude towards a change in monetary policy. Yesterday, the US dollar weakened against a basket of major currencies after the publication of weak statistics. Thus, core durable goods orders declined by 0.1% in January, although investors expected growth by 0.1%. Producer price index rose by only 0.1% in February instead of the expected growth by 0.2%. The dollar index (#DX) closed the trading session in the negative zone (-0.44%).
The pound strengthened by 2% against the “greenback” after yesterday’s vote in the UK Parliament. British lawmakers refused to exit the European Union without any agreements. Today, investors have taken a wait-and-see attitude before the UK Parliament vote on the extension of Brexit date, which expires on March 29. British Prime Minister, Theresa May, opposes Brexit without an agreement with Brussels. She still hopes to make a good deal for the UK and the EU.
Today, during the Asian trading session weak economic data have been published in China. Thus, the volume of industrial production in the country rose to 5.3% in February instead of 5.5%. Financial market participants expect new information on trade negotiations between Washington and Beijing. According to the US President, Donald Trump, negotiations between the United States and China are succeeding and China is seeking to conclude a beneficial deal for both countries.
The “black gold” prices have continued to rise amid a reduction in crude oil inventories in the US. At the moment, futures for the WTI crude oil have approached $58.65 per barrel.
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Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.66%), #DIA (+0.58%), #QQQ (+0.75%).
The 10-year US government bonds yield rose slightly. Currently, the indicator is at the level of 2.63-2.64%.
– Export and import price indices in the US at 14:30 (GMT+2:00);
– Initial jobless claims in the US at 14:30 (GMT+2:00);
– New home sales in the US at 16:00 (GMT+2:00).
We recommend closely following further development on the Brexit issue.