Yesterday was a fairly quiet day and there was a slight pullback towards the strengthening of the dollar in the main currencies. Investors were not embarrassed despite weak statistics on the United States. In particular, the total number of applications for unemployment benefits increased by 24 thousand but if you look at the breakdown, the number of initial applications increased by 6 thousand and repeated ones by 18 thousand. Also, sales of new houses fell by 6.9%, however, all of these did not affect the mood of market participants. This is largely due to the fact that the dollar has already fallen so much lately against the single European currency and the pound.
Moreover, the correction has long been brewing. Even speculators were already tired of the never-ending British joker and they ignored another vote on Brexit in the House of Commons. Although the outcome of the vote on the question of postponing the date of the United Kingdom's resettlement from the European hostel was completely predictable since the day before the parliamentarians voted for the resettlement to take place only with an agreement arranging the UK itself naturally. Here, even Donald Trump spoke on the issue of Brexit, accusing Europe of behaving badly since it took an extremely tough position and did not intend to take into account the demands and desires of London. US president Trump even threatened Europe with a trade war, as if now the United States did not impose restrictions on the import of European goods. Precisely such statements by the President of the United States that can be the main reason for strengthening the dollar. Thus, they became the mechanism that launched the local correction.
Today, data on industrial production is about to be released. The growth rate of which can slow down from 3.8% to 3.5%. Hence, American statistics will most likely continue to disappoint investors, which clearly demonstrates that America is not so great.
In Europe, there are final data on inflation, which should confirm the preliminary estimate, which showed its growth from 1.4% to 1.5%. However, this fact is already taken into account by the market after the publication of preliminary data. However, weak American statistics, as well as the fact that the rebound has already happened yesterday will help strengthen the single European currency to 1.1350.
In the UK, no data is coming out and the pound will grow due to weak American statistics. The reference point is the mark of 1.3275.
