Dollar pauses as trade deficit soars

US stock market pulled back third session in a row on Wednesday amid new round of weak data. The S&P 500 lost 0.7% to 2771.45. The Dow Jones industrial average slid 0.5% to 25673.46 led by technology, energy and health-care stocks. Nasdaq composite index fell 0.9% to 7505.92. The dollar strengthening paused as US trade deficit climbed to 10-year high of $621 billion in 2018 while 10 of the central bank’s 12 districts indicated “slight-to-moderate” growth in late January and February in the Beige Book survey: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, slipped 0.04% to 96.85 but is higher currently. Futures on US stock indexes point to lower openings today.

 

DAX 30 leads European indexes losses

European stocks pulled back on Wednesday. The the GBP/USD and EUR/USD turned higher ahead of European Central Bank policy meeting today but are currently lower. The Stoxx Europe 600 slipped 0.04% led by banking and auto makers shares. Germany’s DAX 30 fell 0.3% to 11587.63 France’s CAC 40 slid 0.2% while UK’s FTSE 100added 0.2% to 7696.00. The European Central Bank is expected to announce more cheap loans while keeping guidance and interest rates unchanged.

 

Australian stocks rise as trade surplus surges

Asian stock indices are mixed today. Nikkei lost 0.7% to 21456.01 despite yen’s resumed slide against the dollar. China’s stocks are mixed: the Shanghai Composite Index is up 0.1% while Hong Kong’s Hang Seng Index is 0.8% lower. Australia’s All Ordinaries Index on the other hand rose 0.3% as the Australian dollar turned higher against the greenback as data showed trade surplus surged in January.

HK50 on uptrend above MA(200)    03/07/2019 Market Overview IFC Markets chart

 

Brent rebound continues

Brent futures prices are gaining today after data showed US gasoline stockpiles were more than double the forecast while US crude inventories rose. The US Energy Information Administration reported yesterday that domestic crude supplies rose by 7.1 million barrels. May Brent crude rose 0.2% to $65.99 a barrel on Wednesday.

 


 

Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.

This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD consolidates weekly gains above 1.1150

EUR/USD consolidates weekly gains above 1.1150

EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.

EUR/USD News
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains. 

GBP/USD News
Gold extends rally to new record-high above $2,610

Gold extends rally to new record-high above $2,610

Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.

Gold News
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures