The US Dollar Is In The Red. Bexit Is In The Spotlight

Fundamental analysis of Forex market

The US dollar weakened against a basket of major currencies amid fears of the economic slowdown. Yesterday, the Ministry of Commerce reported that orders for manufactured goods fell by 0.5%, as experts expected, amid weak orders for cars, transportation equipment, computers and electronic products. The US currency also weakened due to the strengthening of its main competitors. The single currency added more than 50 pips in price. Technical factors mostly caused this movement. Participants in financial markets began to fix positions before the ECB meeting and the EU summit. The positive dynamics of oil prices supports the demand for commodity currencies. The dollar index (#DX) closed in the negative zone (-0.36%).

The situation around Brexit is running high again. There are only a few days left until the UK leaves the EU. It should be recalled that Brexit was to be held on March 29, then it was moved to April 12. However, today, the British Prime Minister, Theresa May, intends to meet with German Chancellor, Angela Merkel, and French President, Emmanuel Macron, to ask Brexit to be postponed. On Wednesday, April 10, the EU summit will take place, at which the leaders of the bloc will decide on the Brexit delay. If the exit date is not extended, then the UK is more likely to leave the unit without an agreement.

Prices for “black gold” continue to rise. At the moment, futures for the WTI crude oil are consolidating near yearly highs ($64.50/barrel). At 23:30 (GMT+3:00) a report on weekly crude oil stocks according to the American Petroleum Institute will be published.

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Market Indicators

  • Yesterday, in the US stock market, multidirectional dynamics was observed: #SPY (+0.08%), #DIA (-0.36%), #QQQ (+0.25%).
  • The yield on 10-year US government bonds has updated local highs. Currently, the indicator is at the level of 2.51-2.52%.

The news feed for 2019.04.09:

  • the number of open jobs in the JOLTS labour market in the United States at 17:00 (GMT+3:00).

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