The Dollar Index Is Consolidating. Geopolitical Risks Are in the Spotlight

The US dollar has not changed a lot against a basket of currency majors. Yesterday, the US dollar index (#DX) closed the trading session in the negative zone (-0.13%). Investors expect additional drivers. Today, important economic releases from the UK, Germany and the United States will be published. Experts also expect new information regarding US-China trade relations, as well as the Brexit process.

Market sentiment is still volatile due to events in Hong Kong and Argentina. In Hong Kong, mass protests against strict police actions to break up recent demonstrations have been lasting for more than two months. On Monday, more than 130 flights were canceled at Hong Kong Airport, as thousands of protesters gathered in the departure and arrival halls. Meanwhile, on Monday, the stock market and the Argentine peso fell sharply due to the presidential election, where opposition candidate Alberto Fernandez won. These events support the demand for "safe" assets.

The situation in the UK is getting worse amid the oncoming Brexit. According to The Guardian, one-in-five Britons are stockpiling food, drinks, and medicine. British people and large companies fear that Britain will leave the bloc without a deal and it will lead to a crisis.

The "black gold" prices have been growing. Currently, futures for the WTI crude oil are testing the $55.20 mark per barrel. At 23:30 (GMT+3:00) API weekly crude oil stock will be published.

Market Indicators

Yesterday, the bearish sentiment was observed in the US stock markets: #SPY (-1.22%), #DIA (-1.44%), #QQQ (-1.15%).

The 10-year US government bonds yield has declined significantly again. At the moment, the indicator is at the level of 1.64-1.65%.

- UK labor market data at 11:30 (GMT+3:00);
- ZEW economic sentiment indices in Germany and the Eurozone at 12:00 (GMT+3:00);
- US inflation report at 15:30 (GMT+3:00).

by JMarkets, 2019.08.13

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.