DXY index
Key events: USA - ADP Nonfarm Employment Change (Jul) USA - Crude Oil Inventories Tuesday witnessed a stumble in the S&P 500, with consumer stocks bearing the brunt of the pressure, as investors absorbed the latest round of quarterly earnings reports. The S&P 500 declined by 0.3%, while the Dow Jones Industrial Average managed to edge up by 0.2%, or 71 points. In contrast, the Nasdaq experienced a 0.4% decline.
Key events: UK – Construction PMI (Feb) Canada – Ivey PMI (Feb) Despite the Fed's best efforts, the labor market remains overheated as initial jobless claims fell by 2,000 (n/a) to 190,000 and U.S. service sector business activity remains elevated. In the context of fighting inflation, this threatens to lead to a tightening of monetary policy and, consequently, a worsening of economic conditions.
Key events: Eurozone - ECB President Lagarde Speaks USA - Core PCE Price Index (MoM) (Dec) USA - Pending Home Sales (MoM) (Dec) The dollar gained against all currencies of the Big Ten yesterday amid the published economic data. The strengthening of the dollar coincided with the growth of risk appetite in Europe and the U.S. In this case, the yield on 2-year U.S. Treasury notes interrupted a two-day decline and rose Thursday to 4.18%, and the yield on 10-year bonds rose 5 bps to 3.49%.
Key events: Eurozone – ECB President Lagarde Speaks After two weeks of strong gains, European markets returned some of the momenta from earlier this year with a subdued pullback last week, with some suggesting that we may have seen highs in the short term, similar to what we saw last year. In the U.S. markets, the week was more mixed, with the Dow posting its worst week since early December, while the Nasdaq 100 ended the week higher.
Key events: Eurozone – ECB's Supervisory Board Member Jochnick Speaks UK – NIESR Monthly GDP Tracker USA – Federal Budget Balance (Nov) Canada – BoC Gov Macklem Speaks
Key events: Eurozone – ECB's Supervisory Board Member Jochnick Speaks Eurozone – ECB's De Guindos Speaks The dollar weakened against all of the Big Ten currencies except the Swiss franc on Thursday. It showed a three-day decline and closed at its lowest level since August 12. DXY held positions at 105.80 during yesterday's trading session, consolidating after aggressive selling the day before, which resulted in the asset having to retreat to local lows again.
Key events: Eurozone – ECB Publishes Account of Monetary Policy Meeting Last night the minutes of the November FOMC meeting were published. The main thing - the US regulator made it clear: there is a willingness to slow down the pace of rate hikes.
Key events: US - Core CPI (MoM) (Sep) US - CPI (YoY) (Sep) US - CPI (MoM) (Sep) US - Initial Jobless Claims US - Crude Oil Inventories The dollar weakened yesterday amid uncertainty over the Bank of England's willingness to continue supporting the country's bond market, which has become a key pressure point for the global financial sector.
Key events: USA — JOLTs Job Openings (Aug) Eurozone — ECB President Lagarde Speaks The technical reversal pattern Shooting Star is formed on the weekly chart of the DXY index. Philosophical Japanese, who gave such a romantic name to this pattern, did not assume how exactly it would tell about the current situation. The superstar of the last year and a half, the unstoppable dollar, has shown this configuration on the W1 timeframe for the first time since it took off. So, the star is falling.