The USD Index Holds Current Levels

The USD didn't change its position against the basket of major currencies. The USD index (#DX) closed in the green (+0.08%). The demand on the haven currencies has grown due to the news on the arrest of Huawei Technologies CFO Sabrina Meng Wanzhou. She was arrested in Canada on December 1, on demand from the US. She is suspected in breaking the US/Iran trading embargo. Investors worry that her arrest will restore the US/China trade war and worsen the relationships between the countries.

Investors keep evaluating the Brexit situation. Recently, it became known that the UK might not leave the US after all. Theresa May was heavily criticized by the Parliament due to her proposed agreement on the Brexit conditions. Analytics think that the UK might refuse to leave the EU outright due to these disagreements.

Some economic reports from the UK and Canada were published yesterday. The service PMI for the UK reached 50.4 in November while the experts expected 52.5. The Bank of Canada left the key interest rate at 1.75%. The regulator suddenly worsened the inflation expectations forecast which lead to massive sell-off of CAD. During the Asian trading session today, a report on the retail sales in Australia was published, which matched the predictions perfectly at 0.3%. We expect essential reports from Canada and the US today.

The oil market is still bearish. At the moment the WTI futures are at 52.85 USD/barrel. At 18:00 (GMT+2) a crude oil report will be published in the US.

Market Indicators

The US stock market was closed yesterday due to the farewell to George Bush-senior.

The 10-year US government bonds yield is at 2,91-2,92%.

• - ADP Nonfarm Employment Change (US) – 15:15 (GMT+2:00);
• - Non-Manufacturing PMI by ISM (US) – 17:00 (GMT+2:00);
• - PMI by Ivey (CAD) – 17:00 (GMT+2:00).

by JustMarkets, 2018.12.06

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.