The Demand for Greenback Has Resumed. Trump Intends to Cancel All Relations with China

Greenback is strengthening against most major currencies. The US dollar index closed in the green zone (+0.78%). US President Donald Trump has expressed his intention to cancel US economic relations with China, saying that America won't suffer if the world's two largest economies no longer cooperate. The media also reported that the US authorities are going to impose restrictions on the import of some goods from the Xinjiang Uygur Autonomous Region of the PRC, and Beijing, in turn, may impose sanctions on American officials who visit Taiwan.

The British pound has continued to lose ground amid fears that the UK is preparing to abandon the terms of the Brexit deal. Today, the country's authorities intend to present their plans regarding Brexit and publish a bill that "would break international law in a specific and limited way".

Investors' attention today will be focused on the meeting of the Bank of Canada at 17:00 (GMT+3:00). The regulator is expected to keep the main parameters of monetary policy at the same level. We recommend paying attention to the comments of the representatives of the Central Bank.

The "black gold" prices have been recovering after a sharp fall since the beginning of this week. At the moment, futures for the WTI crude oil are testing $37.50 per barrel. At 23:30 (GMT+3:00) weekly crude oil inventories will be published according to the American Petroleum Institute.

Market indicators

Yesterday, the US stock market was bearish: #SPY (-2.73%), #DIA (-2.25%), #QQQ (-4.81%).

The 10-year US government bonds yield has moved down. The indicator has reached 0.66-0.67%.

• - EIA Short-Term Energy Outlook in the United States at 15:00 (GMT+3:00);
• - JOLTs Job Openings in the United States at 17:00 (GMT+3:00);
• - The decision on the interest rate by the Bank of Canada at 17:00 (GMT+3:00).

by JMarkets, 2020.09.09

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.