Fundamental analytics

Positive market sentiment at the start of the new week, USD dollar under light pressure

On Friday, US markets showed a slight decrease, technically the index of the broad US market SP 500 once again failed to overcome a significant mark of 2,670-2,680 points. At the same time, a new trading week in Asia started positively, Asian indices were able to close mostly in the green, as on the contrary Europe has not yet shown a positive mood - European exchanges are traded under light pressure in the early session.

Last week’s trading was influenced by geopolitical risks. In general the markets did not particularly believe that the situation in Syria would develop in a negative scenario (the dynamics of defensive assets such as gold and the Japanese yen indicated that there was no mass escape from risk) we observed individual days when the volatility was really high. Besides the week was very interesting and full of information. In addition to geopolitics, the markets focused on US inflation data, the Fed's minutes, as well as the ECB's reporting on the last meeting on March 7-8.

As for geopolitical risks, probably this week the influence of this factor will be reduced (after the indicative military action of pro-American coalition in Syria this weekend) and attention will gradually shift towards economic factors, new information on US-Chinese trade relations and the corporate reporting season in the US. In general, the new week begins with weak positive sentiments, futures for US indices are traded in the green, and the dollar index is insignificant in the red.

Today we will analyze data on retail sales in the US. In addition, speeches by American financial officials are of some interest as well. Tomorrow comes a very important block of economic data on the state of the Chinese economy (GDP, industrial production, retail sales), as well as industrial production in the US in March.

FOREX currency market starts a new five-days amid the weakening of US dollar. The dollar index DX retreated to the mark of 89.30 points. The main currency pair of FX market EUR / USD has gained in the zone 1.2362 and is trading positively, remaining above the significant $ 1.23 mark. The GBP / USD was the focus of attention last week for the whole market, when the pound came close to annual highs. Trading of the new five-day period also started positive for GBP / USD, the pair is trading near 1.4279. The decisive strong factor will be the close above the key level- 2018 January high, this is a resistance 1.4343.

Good luck in your trading!


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