Strong US housing data supported USD dollar
Today, European stock indexes are gaining, amid positive corporate reports on the profits of European companies. The European Stoxx Europe 600 SXXP, gained by 0.4% to 384 points in the first hours of trading. Market attention on continues to focus on corporate earnings as well as slightly adjusted euro.
The mood of the market in recent days was determined by the events of the previous week: the speech of Yellen before the Congress, disappointing data on inflation in the US and consumption. To this the failure of US Senate's efforts to vote on the health care law was added. These events had a negative impact on the dollar and provoked sales in stock assets.
Today on FOREX, there is a slight correction amid a local profit taking before the ECB's tomorrow meeting. EURUSD fell to the area of â€‹â€‹1.1512 where longs returned to the markets. Gold also adjusted to immediately return to the $ 1240 level. We expect restrained trading on FOREX today in anticipation of tomorrow's important news event.
On Tuesday, the oil market gained slightly, although the overall technical picture remained practically unchanged. The market expects the development of sideway consolidation for Brent. Yesterday's API data on reserves showed unexpected growth. For a week, oil reserves in the US increased by 1.6 million barrels (to 497.2 million). According to Reuter’s surveys, analysts on average expected a fall of 3.2 million barrels.
On Tuesday, global markets moved to consolidation and rolled back from earlier levels. The failure to vote on health care reform in the US led to the fixation of profits on European and American stock assets. Thus, in the United States, political uncertainty surrounding President Trump and his pre election promises in terms of tax breaks and infrastructure projects comes to the forefront again. The season of corporate earnings continues and the data is still positive yesterday the strong data was presented by the US financial sector. Today the focus is on official data on oil and petroleum inventories in the US. In addition to the meeting of the European regulator tomorrow and ongoing reporting season, the markets will also monitor the data on inflation in the euro area and data on the housing market in the US, as well as consumer confidence data.