The US dollar slightly strengthened against a basket of major currencies. The dollar index (#DX) closed in the positive zone (+0.04%). Investors are focused on the trade war between the US and China. It became known that China intended to impose duties on the US goods $60 billion worth starting on June 1 after Washington tariff raising on Chinese imports $200 billion worth. However, US President Donald Trump warned China not to strike back, otherwise, China will only get worse. “There is no reason for the U.S. Consumer to pay the Tariffs, which take effect on China today… Therefore, China should not retaliate-will only get worse!” – Trump tweeted. At the same time, the President hopes that countries will nevertheless be able to reach an agreement.
The news feed was fairly calm yesterday. Today we expect important economic data from the UK and the Eurozone. The euro demonstrates positive dynamics, as the German economy shows growth and investors hope that economic releases will support the improvements. We also recommend paying attention to the escalation of the trade conflict between the US and China.
The “black gold” prices are consolidating after the collapse the day before. At the moment, futures for the WTI crude oil are testing the mark of $61.00 per barrel. At 23:30 (GMT+3:00) the API weekly crude oil stock will be published.
Yesterday, the aggressive sales were observed in the US stock market due to trade disputes between the US and China: #SPY (-2.51%), #DIA (-2.48%), #QQQ (-3.47%).
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The 10-year US government bonds yield is also declining. Currently, the indicator is at the level of 2.41-2.42%.
– Data on the UK labor market at 11:30 (GMT+3:00);
– ZEW economic sentiment indices in Germany and the Eurozone at 12:00 (GMT+3:00);
– Export and import price indices in the US at 15:30 (GMT+3:00).