The US dollar strengthened again relative to a basket of currency majors. Yesterday, the dollar index (#DX) updated monthly highs and closed in the positive zone (+0.46%). Democrats and Republicans in Congress reached an agreement on the construction of a wall on the border with Mexico, which should prevent another shutdown of the US government next weekend. The agreement would provide $1.38 billion for the construction of 55 miles of the wall along the Mexico border. Now the agreement should be approved by both houses of Congress, and then signed by the US President Donald Trump.

The British pound weakened significantly after the publication of weak economic reports. Thus, GDP (q/q) slowed down in the fourth quarter of 2018 to 0.2% from 0.6%, GDP growth (y/y) counted to 1.3%, while experts forecasted 1.4%. The manufacturing production fell by 0.7%, although investors expected a growth rate of 0.2%. Such weak economic statistics are associated with uncertainty concerning Brexit. Only 7 weeks are left until the Brexit, and Prime Minister, Theresa May, hasn’t been able to agree and approve the deal on the conditions for the country’s exit from the block.

The “black gold” prices have been recovering. At the moment, futures for the WTI crude oil are testing $52.75 per barrel. At 23:30 (GMT+2:00), a report on the API weekly crude oil stock will be published.

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Market Indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (+0.06%), #DIA (-0.15%), #QQQ (-0.09%).

The 10-year US government bonds yield fell slightly. Currently, the indicator is at the level of 2.66-2.67%.

The news feed on 12.02.2019:

JOLTS job openings in the US at 17:00 (GMT+2:00).

We also recommend paying attention to the speeches by the heads of the Bank of England and the Fed.

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