The US Dollar Moved away from Local Lows

Yesterday, the US dollar recouped some of the losses relative to the majors. The dollar index closed the trading session in the positive zone (+0.14%). In the second half of the day, the US currency gained support because of positive statistical data. In August, the US consumer confidence index increased by 2.4% to 122.9. Market expectations were at 120.3. At the same time, pressure on the US dollar is still put by the tense situation on the Korean Peninsula and the aftermath of Hurricane Harvey in Texas.

In July, the volume of retail sales in Japan increased by 1.9%, which is higher than the forecasted value of 1.0%. Nevertheless, today in the Asian trading session, the yen continued to lose ground against the US dollar.

Since the beginning of this week, the oil quotes have been showing negative dynamics. Hurricane Harvey has forced more than 16% of refineries to suspend their work. These events can cause a significant drop in demand for "black gold". At the moment, futures for the WTI crude oil are being traded near $46.3 per barrel.

Market Indicators

Yesterday, the major US stock indices closed in the positive zone: #SPY (+0.11%), #DIA (0.30%), #QQQ (0.39%).

The 10-year US government bonds yield is recovering after a significant drop last week. At the moment the indicator is at the level of 2.15%.

Today, we recommend you to pay attention to the following economic reports from the USA:

• – A preliminary report on the labor market from ADP at 15:15 (GMT+3:00);
• – Revised data on GDP in the second quarter at 15:30 (GMT+3:00);
• – Crude Oil Inventories at 17:30 (GMT+3:00). This report may have an impact on the dynamics of the commodity currencies.

by JMarkets, 2017.08.30

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.