Fundamental analytics

Positive start of the week for US markets, USD dollar under weak pressure

Airstrikes in Syria over the weekend and the official American explanation that it was a limited one-time demonstration of strength, caused a slight reaction in the equity markets. There is a continuation of this story, but it also does not have a particular impact on the global market sentiment while remaining local news, the United States said it would announce additional sanctions against Russia for its participation in the use of chemical weapons in Syria.

On the background of geopolitical risks attenuation, a positive market sentiment is forming in the market at the beginning of a new week.  American markets opened positively, but European exchanges failed to get into the positive zone.

The coming week is not very rich in important economic news. Today, trading will be set by data on retail sales in the United States, as well as comments from representatives of the FOMC. Retail sales increased seasonally by 0.6% in March compared to the previous month, according to a report from the Department of Commerce, economists' expectations were at 0.4%. Expenditures on retail sales in the US rose in March, but the broader trend towards consumer spending shows only moderate growth, despite a solid labor market and rising wages of employees.

The US dollar is under modest pressure. It is resistant to the dollar of Canada and New Zealand, while at the same time retreating against major counterparts.

On FOREX, the Euro is just above the midpoint of the range of $ 1.23 - $ 1.24, noted last week. Until the weekend, the dollar rose to JPY107.75, but today lost momentum. He retreated almost to JPY107.17. Sterling maintains a positive attitude and confidently continues impressive growth. At European session, EUR / GBP updated Friday's highs and did not reach exactly four points to the level of the January 2018 highs.

Finally, at least ten representatives of the Fed will speak this week. Kaplan, Kashkari and Bostich will open a big week today. The market remains convinced that this year there will be at least two more rate hikes, and the next step is in June.