Yesterday, the US dollar recovered part of the losses against a basket of world currencies. The dollar index (#DX) closed the trading session in the green zone (+0.33%). Positive economic releases from the US supported the greenback. In August, the core producer price index rose by 0.3% (m/m), which was higher than the market expectations of 0.2% (m/m). Today, investors will assess data on inflation in the US.

Financial market participants are focused on today’s ECB meeting. It is expected that the Central Bank will reduce the deposit rate to -0.50% from -0.40%. Experts also forecast that the regulator may announce the introduction of additional measures to stimulate the Eurozone economy. We recommend paying attention to the comments by the ECB representatives.

Investors continue to monitor the trade relations between the US and China. The partners took steps to resolve trade disputes, which further weakened demand for the safe-haven currencies. Beijing has exempted 16 categories of US goods from additional tariffs. At the same time, Donald Trump said on Twitter that he would delay the tariff increase on Chinese imports scheduled for October by two weeks.

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There are aggressive sales in the “black gold” market. Currently, futures for the WTI crude oil are testing the $55.35 mark per barrel.

Market Indicators

  • Yesterday, the bullish sentiment prevailed in the US stock markets: #SPY (+0.71%), #DIA (+0.85%), #QQQ (+0.94%).
  • The 10-year US government bonds yield has moved away from local highs. At the moment, the indicator is at the level of 1.72-1.73%.

The Economic News Feed for 12.09.2019:

  • ECB interest rate decision at 14:45 (GMT+3:00);
  • US inflation report at 15:30 (GMT+3:00).

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