Yesterday, the stock indices of the leading stock markets of America has not demonstrated a single dynamics and closed mixed. The Dow Jones fell by 0.18% (20054.34), S&P 500 up 0.07% (2294.67), the Nasdaq rose 0.15% (5682.45). In European markets also saw mixed dynamics and lower volatility. The German DAX index dipped slightly by 0.05% (11543.38), British FTSE 100 grew 0.04% (7188.82).
Today it is expected the number of publications of the macroeconomic data and the speeches of the monetary authorities that could affect investors ' decisions during the trading sessions.
At 03:10 MSK a Speech of the Chairman of the Reserve Bank of New Zealand Wheeler.
At 10:00 MSK trade balance of Germany in December.
At 12:00 MSK RBA Lowe speaks.
At 16:30 MSK the Number of initial applications for unemployment benefits in the United States.
At 16:30 MSK the Index of prices of new housing in Canada for December.
At 17:10 MSK FOMC member Bullard speaks.
At 21:10 MSK the President of the Chicago Fed Evans speaks.
At 21:30 MSK the President of the Bank of England's Carney speaks.
Yesterday the Reserve Bank of New Zealand kept its key rate unchanged. The main reason for this decision was shift focus from domestic problems to external, in particular to the escalation of protectionist sentiments of the new administration of USA. On this background the new Zealand dollar fell nearly 1% this morning in the Asian session. The comments of the Chairman of the Reserve Bank of New Zealand Wheeler also helped to that moving. He expects such a reaction from the market and is not planning any further rate changes in the foreseeable future.
Following yesterday's vote in the House of Commons of the British Parliament it was given the official consent to start the process of Brexit in March. The elections will also be in France, which may lead to increased volatility in European stock markets.
At the American markets the increase of volatility may be followed the meeting of Donald Trump with the Prime Minister of Japan this week. Recently the President was noticed with the sharpness in foreign policy, in particular in contacts with colleagues. Speech of Fed officials will influence the dynamics of the American currency today. The interest of investors may attract the speech of Chicago Fed President Evans, who usually speaks negatively about the rate increase, and it can restrain the decline of the pair EUR/USD.
EIA released official data on oil inventories which were close to the forecasted level of API, it increased by 13.8 million barrels. Therefore, it was not particularly a surprise for market participants, and already has factored in the price. Stocks are rising continuously for the fifth week in a row. During this time, total growth amounted to nearly 30 million barrels. However, oil prices showed a significant correction yesterday after two days of declines. The market receives support from the expectation of a positive report about OPEC production cuts, which will be published on Monday.
Sincerely, Global FX chief analyst Sergey Melnikov