The US dollar fell yesterday against a basket of major currencies after a speech by the head of the Federal Reserve Bank of New York, John Williams. The official said yesterday during the banking conference that in case low rates and inflation, the regulator would have to take the necessary measures to stimulate the economy. Investors took his words as a signal to lower interest rates at the next Fed’s meeting. The US dollar index (#DX) closed yesterday in the red zone (-0.42%).

Despite this, today the US dollar is recovering losses. Positive economic statistics, which was published yesterday, supported the American currency. Thus, the Philadelphia Fed Manufacturing Index counted to 21.8, while experts expected 5.0. The number of initial jobless claims was 216K, which coincided with forecasts. Also, US Treasury Secretary Steven Mnuchin said yesterday that negotiations with China were continuing, and one shouldn’t believe everything the media says. Earlier, some publications have reported that negotiations are actually suspended due to the fact that the US government has not weakened sanctions against Huawei Technologies.

The British pound strengthened against the US dollar. Optimistic economic data in the UK was published yesterday. Thus, the volume of retail sales rose in June by 1.0%, while experts expected a decline by 0.3%. The core retail sales index (yoy) rose by 3.6% in June instead of 2.7%.

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The “black gold” prices are rising after lowering the day before. At the moment, futures for WTI crude oil are testing the mark of $55.90 per barrel.

Market Indicators

  • Yesterday, in the US stock markets, a variety of trends was observed: #SPY (+ 0.37%), #DIA (-0.00%), #QQQ (+ 0.11%).
  • The yield on 10-year US government bonds is at 2.04-2.05%.

The news feed 2019.07.19:

  • The core index of retail sales in Canada is at 15:30 (GMT+3:00);
  • Michigan consumer sentiment and expactations at 17:00 (GMT+3:00).

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