USD dollar consolidates amid global risk-off mode
US equity futures pointed to sharply negative Wall-Street start throughout the day as the market sentiment had decayed back on Monday late session. Today Wall Street opened deep in the red generally amid global growth worries. Weak data on china 2018 GDP and revised global outlook for 2019 from World Monetary Fund formed higher risk and dimmer sentiment and brought global markets down once the markets trading volumes returned to normal levels. Earlier today all large Asia indexes ended the day in the red, European markets are traded under pressure as well.
In the FOREX market USD dollar is still in the market spotlight. USD dollar index is gaining slowly but surely. On Monday USD index tested the round mark 96 points but failed to gain through. Given today market, sentiment and risk-off mode, USD dollar index has a chance to overcome this important mark and maybe get a foothold above.
On this background, European currency continues to decline, EUR / USD fell to 1.1350-1.1345. This is a strong technical level, but despite technical factors traders sell Euro and buy more USD.
Positive sentiment persists in the British currency market. In the European session, GBP/USD marked the daily maximum in the area 1.2910. Traders focused on positive labor market data. Unemployment fell from 4.1% to 4.0%, which is the lowest value of this indicator since mid-1975. Higher than forecast were also data on the growth of average wages. Experts predicted data at the level of last month at 3.3%, but the actual figure was 3.4%, the highest level since June 2010.
Today the market focuses on the comments of political and economic leaders who gather in Davos at the World Economic Forum in Switzerland. In addition, markets will analyze US data on existing home sales and US corporate reports data.