The US dollar strengthened slightly against a basket of major currencies. Yesterday, the US dollar index (#DX) closed the trading session in the positive zone (+0.09%). So far, there has been no news regarding the trade war between the United States and China. Financial market participants expect additional drivers.
The Chinese yuan has strengthened after the publication of optimistic economic data. So, yesterday, reports on the volume of exports and imports were published in China. Thus, the volume of exports grew by 3.3% in July, while experts forecasted a decrease by 2.0%. The volume of imports fell by only 5.6% in June instead of 8.3%. Today, China’s consumer price index (y/y) has been published during the Asian trading session, which has risen by 2.8% instead of 2.7%. All these data improved investors’ sentiment and made it clear that the market situation was not as bad as it seemed.
Also, during the Asian trading session, positive data on Japan’s GDP have been published. Thus, GDP (y/y) grew by 1.8% in the second quarter instead of 0.4%. GDP (q/q) increased by 0.4% in the second quarter, while experts forecasted growth by 0.2%.
The “black gold” prices have moved away from the lows for seven months after Saudi Arabia said it did not intend to put up with such a reduction in prices. Currently, futures for the WTI crude oil are testing the $52.80 mark per barrel.
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Yesterday, aggressive purchases were observed in the US stock markets: #SPY (+1.96%), #DIA (+1.49%), #QQQ (+2.18%).
The 10-year US government bonds yield won back part of the losses. At the moment, the indicator is at the level of 1.71-1.72%.
– UK GDP data at 11:30 (GMT+3:00);
– UK manufacturing production at 11:30 (GMT+3:00);
– US producer price index at 15:30 (GMT+3:00);
– Report on the labor market in Canada at 15:30 (GMT+3:00).