The US Dollar Is Consolidating. Geopolitical Events Are in the Focus of Attention

The US dollar strengthened slightly against a basket of major currencies. The dollar index (#DX) closed yesterday’s trading session in the positive zone (+0.18%). The US currency was supported by the news that the US and Japan concluded a major trade agreement. US President, Donald Trump, noted that the agreement was very strong and would improve the condition of American farmers, as it would open them access to the Japanese market. Donald Trump also said that the parties continued to work on the following provisions of this agreement.

Financial market participants continue to monitor the progress of trade negotiations between Washington and Beijing. Summit talks should continue on Thursday. However, there is already news that China is not going to cede the US and will insist on its positions, which is contrary to the expectations of the US regarding this agreement.

Also, market sentiment is still unstable due to impeachment proceedings against US President Donald Trump. As it became known, the Federal Court of New York demanded from Donald Trump to submit his tax returns and other financial documents over the past eight years into the Manhattan prosecutor.

The “black gold” prices have been declining. At the moment, futures for the WTI crude oil are testing the $52.75 mark per barrel. At 23:30, API weekly crude stock will be published.

Market Indicators

Yesterday, there was the bearish sentiment in the US stock markets: #SPY (0.43%), #DIA (0.35%), #QQQ (0.30%).

The 10year US government bonds yield has become stable. At the moment, the indicator is at the level of 1.541.56%.

• US producer price index at 15:30 (GMT+3:00).

We also recommend paying attention to the speech by Fed Chairman Powell.

by JustMarkets, 2019.10.08