Demand for the US Dollar Is Still High

Yesterday, the US currency strengthened against the basket of major currencies. The US dollar index (#DX) updated a two-week high and closed in the positive zone (+0.24%). Investors' expectations regarding further increase in the key interest rate support the dollar. Last week, the US published mixed data on the labor market. At the same time, the Fed officials note that labor market conditions are good and expect a stable growth in the US economy.

The British pound has updated annual lows after the Secretary of State for International Trade Liam Fox announced that the UK is more likely to exit from the European Union without signing any agreements. The official also accused the European Commission that it did not make concessions and did not seek to achieve economic prosperity.

Today, during the Asian trading session, the Reserve Bank of Australia has decided on the key interest rate. The regulator, as expected, kept the interest rate at the previous level of 1.50%.

The "black gold" prices are rising. At the moment, futures for the WTI crude oil are testing a mark of $69.2 per barrel. At 23:30 (GMT+3:00), a report on the API weekly crude oil stock will be published.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.37%), #DIA (+0.18%), #QQQ (+0.59%).

At the moment, the 10-year US government bonds yield is at the level of 2.94-2.95%.

The news feed on 2018.08.07:

- JOLTS job openings in the US at 17:00 (GMT+3:00);
- The index of economic activity in Canada from Ivey at 17:00 (GMT+3:00).

by JustForex, 2018.08.07

We advise you to get acquainted with the daily forecasts for the major currency pairs.

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.

Open Account

Get Free Analytics

* required fields