US and China Are Close to Reach an Agreement

On Friday, the US dollar strengthened against the basket of major currencies. The dollar index (#DX) closed in the positive zone (+0.42%). Investors follow the negotiations between the US and China closely. According to The Wall Street Journal, China and the United States are close to reach trade agreement. Beijing agreed to reduce tariffs and lift restrictions on imports of American cars, agricultural and chemical products. In turn, Washington will cancel the increase in duties on a number of Chinese goods. The US currency is additionally supported by the positive dynamics of the US government bonds yield.

The sentiment of financial market participants has improved in relation to the British pound. Last week, UK Prime Minister, Theresa May, reported that British lawmakers could vote to postpone the Brexit. EU chief Brexit negotiator, Michel Barnier, has announced that the European Union is ready to help reach an agreement on Brexit. At the moment, the GBP/USD currency pair has become stable.

The “black gold” prices have been recovering after a rapid fall on Friday, March 1. At the moment, futures for the WTI crude oil are testing the mark of $56.10 per barrel.

Market Indicators

On Friday, the bullish sentiment was observed in the US stock market: #SPY (+0,62%), #DIA (+0,44%), #QQQ (+0,69%).

The 10year US government bonds yield has continued to grow. At the moment, the indicator is at the level of 2.752.76%.

The index of economic activity in the UK construction sector at 11:30 (GMT+2:00).

by JustMarkets, 2019.03.04