The US Dollar Remains Under Pressure

Yesterday, the US dollar continued to lose ground relative to the “majors”. The dollar index (#DX) fell by more than 0.5%. In July, the volume of industrial orders in the US declined by 3.3%. Some representatives of the Fed believe that the aftermath of Hurricane Harvey will have a negative impact on economic performance in the short term. Additional pressure is also caused by geopolitical risks on the Korean peninsula.

The Australian Bureau of Statistics reported that in the second quarter the country’s GDP growth was 0.8% compared to the previous value at 0.3%. At the same time, experts expected the growth rate of 0.9%.

The oil prices continue to recover. During yesterday’s trading, futures for the WTI crude rose by 2.5%. At the moment, quotes are testing the mark of $48.75 per barrel.

Today, investors’ attention is focused on the meeting of the Bank of Canada. Most experts believe that the regulator will leave the interest rate at the previous level of 0.75%. I would like to note that recent economic reports indicate positive changes. We recommend you to follow the rhetoric and comments of representatives of the Bank of Canada.

Market Indicators

Yesterday, the aggressive sales were observed on the US stock market. The main indices closed in the negative zone: #SPY (0.72%), #DIA (1.02%), #QQQ (0.90%).

The 10year US government bonds yield fell sharply. At the moment the indicator is at the level of 2.062.08%.

News background on 2017.09.06:

The US balance of trade at 15:30 (GMT+3:00);The index of business activity in the nonmanufacturing sector of the US from ISM at 17:00 (GMT+3:00);The Fed’s “Beige Book” at 21:00 (GMT+3:00).

At 17:00 (GMT+3:00), the Bank of Canada will decide on the interest rate.

by JustMarkets, 2017.09.06