The US dollar fell against the single European currency during the trading yesterday on the background of lacking important fundamental statistics. It is possible that some pressure on the dollar came from the report of the US Treasury, which indicated that the US government spending in January 2017 grew much faster than tax revenues and led to an increase in the budget deficit.

According to the data, the budget deficit from October 2017 to January 2018 amounted to 176 billion US dollars, which is 11% higher compared to the same period of the previous year.

It should be noted that the new tax reform will lead to an even larger reduction in revenues of $ 1.5 trillion, which will further increase the US budget deficit.

The report also indicates that government revenues in January 2018 increased by 5% compared to January 2017, while expenditures increased by 6%.

As for the technical picture of the EUR/USD currency pair, the 1.2340 level remains a problem for the European currency, the breakthrough that will lead to a further upward trend of the trading instrument with the update of 1.2390 and 1.2430. In the event of a reversal to the support level 1.2290, the pressure on the euro may rise again which will lead to a test of the levels 1.2240 and 1.2210.

The Australian dollar managed to strengthen partially its positions against the US dollar and recover during the Asian session, after data that the index of conditions for doing business in Australia for the month of January this year increased compared to December. This indicates strengthening of the momentum in the Australian economy.

According to National Australia Bank (NAB), the index of conditions for doing business in January rose to 19 points, while the long-term average was 5 points. The business confidence index rose to 12 points.

As for the technical picture of AUD/USD pair, the current growth indicates only the formation of a small correction after a major fall, which was formed in early February this year. The main target of the major players will be the area of 0.7660, but for this, it is necessary to keep below the level of 0.7915 in the short term.

The quotes of oil reacted positively to the OPEC report and even rose slightly at the beginning of the week, but it was not possible to keep on the new highs which led to further selling of black gold by the end of the day.

According to the OPEC report, oil production of the cartel in January this year fell by 8,000 barrels per day, and commercial oil reserves of OECD countries in December fell to 2.888 billion barrels.

Despite this, OPEC expects that the oil supply outside the OPEC countries will grow by 1.4 million barrels a day in 2018, and this will mainly because of the help from the United States. Global demand for oil in 2018 will be 98.6 million barrels a day.

* The presented market analysis is informative and does not constitute a guide to the transaction.