USD Index Review

Yesterday, despite the fact that the US economic releases came in with mixed outcomes, but mostly negative, the US Dollar was gaining momentum, trading near the session high around 100.40. However, Donald Trump decided to pressure the US Dollar again, saying “other countries take advantage by devaluation. So much for the strong dollar,” these short words were enough for the US Dollar to crack the 100.0 barrier and closed yesterday’s trading below that solid support, which opens the way for further declines ahead.

Moreover, the US equities weren’t pleased with Trump’s remarks, spreading fears across the three US indices, including S&P 500, Dow Jones Industrial Average, and Nasdaq. Yet, Nasdaq managed to close the day slightly higher supported by corporate earnings.

US Data

As noted above, the US economic releases came in with mixed data, but mostly negative. The Employment Cost Index slowed down in Q4 to 0.5%, despite the fact that the estimates were to remain stable at 0.6%.

CB Consumer Confidence Index declined more than expected to 111.8 in January down from 113.3, while the estimates were to decline slightly to 112.6. Yet, the index remains near the highest level since almost a decade.

Finally, the Chicago PMI came in with a shocking surprise, declining to the lowest level since May of last year, despite the fact that the estimates were to rise further to 55.1.

The Day Ahead

As for the day ahead, there are plenty of economic figures will be released today. Traders will be watching the Manufacturing PMI from all over Europe, the UK, and the US, which set to have a notable impact on the markets.

Forecast

Prior

55.1

55.3

56.1

56.0

53.3

53.2

53.4

53.4

56.5

56.5

55.1

55.1

55.9

56.1

55.0

54.7