The US Dollar Index Has Updated the Weekly High. The Potential for Growth Remains

August 10, 2018

by JustForex

The US dollar rose against the basket of major currencies during yesterday’s trading. The US dollar index (#DX) updated the weekly high and closed in the positive zone (+0.60%). Yesterday, the producer price index was published in the US, which counted to 0.0% in July and was worse than the forecasted value of 0.2%. However, this did not prevent the dollar from strengthening. Trade relations between the United States and its partners are still in the focus of attention. Today, the US dollar rally has continued.

During the Asian trading session, data on Japan GDP have been published. So, GDP growth counted to 0.5% in the second quarter and was better than the forecasted value of 0.3%. Financial market participants expect data on the UK GDP. We also recommend paying attention to economic statistics from the US and Canada.

The “black gold” prices are consolidating. At the moment, futures for the WTI crude oil are testing a mark of $66.60 per barrel.

Market Indicators

Yesterday, the bearish sentiment was observed in the US stock market: #SPY (-0.14%), #DIA (-0.18%), #QQQ (-0.06%).

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At the moment, the 10-year US government bonds yield is at the level of 2.89%-2.90%.

The news feed on 2018.08.10:

– Data on the UK GDP at 11:30 (GMT+3:00);
– Manufacturing production in the UK at 11:30 (GMT+3:00);
– Core consumer price index in the US at 15:30 (GMT+3:00);
– Report on the labor market in Canada at 15:30 (GMT+3:00).

by JustForex