The US Currency Is Consolidating

The US dollar does not show clear dynamics against the basket of major currencies. The US dollar index closed yesterday with a slight increase (+0.03%). Traders have taken a wait-and-see attitude before the upcoming Fed meeting, which will be held next week on Wednesday. Earlier this week, Fed Chairman Jerome Powell said that the Central Bank was ready to support the economic growth in the United States. Investors believe that the Fed is going to reduce the base interest rate at the next meetings amid slowing inflation and increasing tensions in trade relations.

The Australian dollar is getting cheaper due to the assumptions of financial market participants that the Reserve Bank of Australia will be forced to reduce the rate to support the economy. Yesterday, weak data on the unemployment rate of Australia were published: the figure counted to 5.2% in May and was worse than the forecasted value of 5.1%.

Weak economic data from China have been published today. Thus, the industrial production grew by only 5.0% in May, while experts expected 5.4%. The unemployment rate counted to 5.0%.

The "black gold" prices continue to rise after substantial growth the day before due to increased tensions in the Middle East. Yesterday, two tankers were attacked in the Gulf of Oman. There are suggestions that it could be a torpedo attack, which resulted in explosions and fire on ships. At the moment, futures for the WTI crude oil are testing the mark of $52.00 per barrel.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.41%), #DIA (+0.43%), #QQQ (+0.59%).

The 10-year US government bonds yield has been declining. Currently, the indicator is at the level of 2.06-2.07%.

- Retail sales in the US at 15:30 (GMT+3:00).

We also recommend paying attention to the speech by the Bank of England Governor Carney.

by JMarkets, 2019.06.14

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.