The US dollar weakened against a basket of major currencies. The dollar index (#DX) moved away from monthly highs and closed in the negative zone (-0.27%). Investors assess an agreement between Democrats and Republicans of Congress, which will avoid the next shutdown of government work. The US President, Donald Trump, is not very pleased with this agreement, but he does not want to introduce a new shutdown as well. Donald Trump said that he could push back the deadline for the US and China to conclude a trade deal. It should be recalled that now this date is March 1.
The New Zealand dollar strengthened significantly after the RBNZ meeting. As expected, the regulator left the key interest rate unchanged at 1.75%. During the press conference, the RBNZ representatives said that the interest rate would remain the same during 2019-2020. The level of employment is close to its most stable level. However, core consumer price inflation is still below the target level of 2%, which requires the continuation of a supporting monetary policy. Despite the weaker global growth, the regulator expects that low interest rates help to accelerate New Zealand’s GDP growth in 2019.
The British pound weakened against the US dollar after Theresa May had asked parliamentarians to postpone the vote on the transfer of control over the Brexit procedure for 2 weeks. The Prime Minister has only 45 days until the Brexit, but now it’s not clear what the exit will be.
The “black gold” prices have increased significantly. At the moment, futures for the WTI crude oil are testing the mark of $53.50 per barrel. At 17:30 (GMT+2:00), a report on the US crude oil inventories will be published.
Market Indicators
Yesterday, aggressive purchases were observed in the US stock market: #SPY (+1.29%), #DIA (+1.43%), #QQQ (+1.48%).
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The 10-year US government bonds yield has increased slightly. Currently, the indicator is at the level of 2.67-2.68%.
– Consumer price index in the UK at 11:30 (GMT+2:00);
– Industrial production in the Eurozone at 12:00 (GMT+2:00);
– Statistics on inflation in the US at 15:30 (GMT+2:00).
