Today, in the Asian trading session, the US dollar has sharply weakened against the major world currencies. The pressure is caused by weak reports on inflation and retail sales. The financial markets participants are concerned that the Fed will not make another interest rate increase this year.
Yesterday, Eurostat said that in June, the consumer price index remained unchanged at 1.3% (year on year). Core inflation also remained at the same level of 1.1% (year on year). Investors are waiting for the meeting of the ECB, which will be held this Thursday, July 20.
During yesterday's trading, the bearish sentiment prevailed on the market of "black gold". The oil quotations recovery slowed due to the excess supply on the market. Demand for gold has increased significantly. This is due to the release of positive data on GDP and the volume of industrial production in China.
Market Indicators
Major US stock indices remained practically unchanged: #SPDR S&P 500 (NYSE:SPY) (-0.01%), #SPDR Dow Jones Industrial Average (NYSE:DIA)(-0.02%), #PowerShares QQQ Trust Series 1 (NASDAQ:QQQ) (+0.05%).
The U.S. 10-Year government bonds yield continues to decline. At the moment the indicator is at the level of 2.30%.
Today we advise paying attention to the following events:
- Statistics on inflation in the UK at 11:30 (GMT+3:00);
- The export price and import price indices in the USA at 15:30 (GMT+3:00);
- Speech by the Head of the Bank of England Carney at 16:30 (GMT+3:00).