Currency Majors Are Consolidating

The trade war risks continue to put pressure on the American currency. The US dollar index (#DX) fell significantly and closed on Friday in the negative zone (0.49%). Last week, Donald Trump signed a document, according to which the US imposes duties on imports of steel and aluminum for China. Also, the duties are deferred until May 1 for a number of countries: Argentina, Australia, Brazil, the European Union, Canada, Mexico and South Korea. Thus, on May 1, the US President will decide whether to impose duties on these countries and in what amount. The EU expects to be free of duties. These events caused the US assets sale.

Today we are waiting for low trading activity, since no important news is expected to be published. Investors monitor the situation in the White House and the reaction of other countries to the duties introduction. At the moment, the main currency pairs are consolidating.

The “black gold” prices are decreasing after a rally on Friday. The growth of futures for the WTI crude oil exceeded 2%. At the moment, quotes are testing the mark of $65.60 per barrel.

Market Indicators

On Friday, there were aggressive sales in the US stock market: #SPY (2.13%), #DIA (1.77%), #QQQ (2.64%).

At the moment, the 10year US government bonds yield is at the level of 2.822.83%.

Important economic reports are not expected to be published today. We recommend paying attention to the speeches of the FOMC representatives.

by JustMarkets, 2018.03.26