On Friday, the currency pair broke through the important level of 1.1360. The fact that the euro/dollar exchange rate went beyond Thursday and Friday serves as a strong signal for sellers.
In the yield of ten-year US bonds, there was a reversal from the maximum mark and a fixation at the level of 1.927%.
At the end of the week, there was a strengthening of the US dollar. Reports from the National Association of Realtors show that in the United States in January, sales in the secondary housing market increased by 6.7%. In annual terms, this is 6.5 million homes. According to the revised data, in December resales fell to 6.09 million (3.8%), and not to 6.18 million. The current indicator did not coincide with the forecasts of experts who expected a decrease of 1%.
According to Eurostat, the volume of industrial production in the Eurozone in the last month of 2021 increased by 1.2%, compared with November. Meanwhile, analysts predicted an average rise of 0.3%.
On Monday, the index of business activity in the German manufacturing sector and the overall indicator for the Eurozone countries are expected to be published.
The pound fell against the dollar to the support level of 1.3573. At the moment, the currency pair is consolidating in the price range of the middle of last week. In the case of a new wave of growth, it is possible to break through the resistance boundary - 1.3622.
There is a significant decline in the yield of ten-year British bonds to the level of 1.3860%.
From the data of the reports of the National Statistical Office of the country, it became known that in Britain in January, the volume of retail sales increased by 1.9% against the figures of the previous month and by 3.6%, compared with February 2020. In annual terms, the indicator increased by 9.1%, and not by 9.4%, as expected. In December, retail sales decreased by 3.7%, and in annual terms - by 0.9%.
On Monday, market participants expect the publication of the indicator of business activity in the manufacturing sector of Britain. During the week, the reaction of the British currency to the industrial orders index (CBI), the consumer confidence index, as well as to the net borrowing of the public sector is possible.
Gold failed to break through the level of 1908 dollars per ounce, after which it returned to the price range of Friday. The banking metal continues to react to the US dollar, which recently showed a new wave of strengthening.
In January, in the United States, the volume of sales in the secondary housing market increased by 6.7% year-on-year. In December, there was a decrease in resales by 3.8%. Market participants expect that the Fed will soon reduce the repurchase of securities, which will contribute to an increase in the yield of US treasury bonds.
Trading Friday ended with a fall in the United States stock market, due to negative dynamics from the oil, gas, healthcare and technology sectors. The Dow Jones fell by 0.68%, the S&P 500 index fell by 0.72%.
The global economy is still suffering from the consequences of the pandemic, which continues to increase momentum at the moment. The number of people infected with COVID-19 on Sunday morning was more than 423 million. The data is obtained from the American Johns Hopkins University.
The largest number of cases falls on the countries: USA, Brazil, India. The United States is leading in this indicator, where there are already more than 78 million confirmed cases of coronavirus patients. India is in second place – more than 42 million, followed by Brazil - more than 28 million.
After bitcoin fell to a minimum of $38060, its price began to rise. At the moment, digital gold is around the $39,850 mark. The dynamics of trading depends on the sentiment in the stock market. Within a week, BTC may return to the $4,1200 resistance limit.
According to the results of Sunday, the capitalization of the cryptocurrency market amounted to 1.77 trillion dollars against Friday's figures of 1.85. The market is under a lot of pressure from the alarming news background of the last few weeks.
According to VMware CEO Pat Gelsinger, the first cryptocurrency has a negative impact on the environment. He stated that one transaction in the BTC network consumes an amount of energy sufficient for daily meals at home. The American manager called this situation the "climate crisis".
Meanwhile, legal clashes continue around the Ripple cryptocurrency platform. In the consultations of Perkins Coie from 2012, it was said that the XRP token does not represent a security. However, there is a possibility that the Securities and Exchange Commission may disagree with the results of this analysis.