Yesterday, the greenback strengthened against the basket of world currencies. The dollar index (#DX) set new monthly highs and closed the trading session in the green zone (+0.31%). Demand for the US dollar increased after the publication of optimistic economic reports. In April, the number of building permits and the volume of housing starts increased by 0.6% and 5.7%, respectively. Over the past week, the number of initial jobless claims fell to 212K compared to market expectations of 220K. In May, Philadelphia Fed manufacturing index accelerated from 8.5 to 16.6. The growth in the US government bonds yield supports the US currency.

The British pound is still under pressure. Since the beginning of this month, the pound has weakened against the US dollar by more than 1.9%. Financial market participants are concerned that Prime Minister Theresa May will not be able to approve her Brexit deal again and may soon face a leadership problem. Today, investors will assess statistics on inflation in the Eurozone. We also recommend following up-to-date information regarding trade negotiations between Washington and Beijing.

Oil quotes are consolidating after a sharp growth the day before. At the moment, futures for the WTI crude oil are testing the mark of $63.00 per barrel. We recommend paying attention to the US Baker Hughes oil rig count at 20:00 (GMT+3:00).

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Market Indicators

  • Yesterday, the major US stock indices closed in the positive zone: #SPY (+0.93%), #DIA (+0.87%), #QQQ (+1.00%).
  • The 10-year US government bonds yield is recovering. Currently, the indicator is at the level of 2.39-2.40%.

The news feed on 2019.05.17:

  • Consumer price index in the Eurozone at 12:00 (GMT+3:00);
  • Michigan consumer sentiment and expectations at 17:00 (GMT+3:00).

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