The US Currency Has Been Growing

The US dollar has been growing against a basket of currency majors after the FOMC minutes were published. The US dollar index (#DX) has updated local highs and closed in the green zone (+0.67%). The regulator reported that the US economic recovery after the pandemic is still uncertain, but it is clear that the Fed does not intend to change monetary policy at the upcoming September meeting. Earlier, investors were concerned that the Fed would seek to push inflation above 2% to recover losses. Central Bank officials believe that the US economy will need additional financial stimulus, but the deadline is still undefined.

According to the PRC, China and the US have agreed to hold trade talks in the near future to assess the progress of the phase-one trade deal. However, on Tuesday, White House Chief of Staff, Mark Meadows, said that no new talks were planned between the US and China, although the parties keep in touch with each other concerning the implementation of the first stage.

The "black gold" prices are declining. At the moment, futures for the WTI crude oil are testing the $42.40 mark per barrel.

Market indicators

Yesterday, there was the bearish sentiment in the US stock market: #SPY (-0.42%), #DIA (-0.28%), #QQQ (-0.67%).

The 10-year US government bonds yield is consolidating. At the moment, the indicator is at the level of 0.64-0.65%.

• - Publication of the ECB account of monetary policy meeting at 14:30 (GMT+3:00);
• - Initial jobless claims in the US at 15:30 (GMT+3:00);
• - Philadelphia Fed manufacturing index at 15:30 (GMT+3:00).

by JMarkets, 2020.08.20

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.