Yesterday, the US dollar strengthened against a basket of major currencies. The dollar index (#DX) updated two-week highs and closed in the positive zone (+0.17%). The US currency was supported by the growth of the US government bonds yield, which increased amid news about positive negotiations between the US and China. Donald Trump also noted yesterday that the dollar had become too strong and criticized the Fed, but the markets did not particularly react to his statements. Today, investors expect important statistics from the US, as well as speeches by the FOMC representatives.
The Reserve Bank of Australia left the interest rate unchanged at 1.50%, as experts expected. The head of the Central Bank, Philip Lowe, expects the acceleration of economic growth in the country this year. Additional support for the Australian and New Zealand dollars was provided by the prospects for the abolition of tariffs on Chinese goods if a trade agreement would be signed.
The “black gold” prices are falling after growth the day before. At the moment, futures for the WTI crude oil are testing the mark of $56.45 per barrel. At 23:30 (GMT+2:00), the API weekly crude oil stock will be published.
Yesterday, there was a variety of trends in the US stock market: #SPY (-0.36%), #DIA (-0.82%), #QQQ (+0.02%).
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At the moment, the 10-year US government bonds yield is at the level of 2.72-2.73%.
– Statistics on economic activity in the Eurozone at 11:00 (GMT+2:00);
– The index of economic activity in the UK services sector at 11:30 (GMT+2:00);
– ISM non-manufacturing PMI in the US at 17:00 (GMT+2:00);
– New home sales in the US at 17:00 (GMT+2:00);
– Ivey PMI in Canada at 17:00 (GMT+2:00).
We also recommend paying attention to the speeches by the FOMC members and the Bank of England governor.