The US Currency Continues to Lose Ground

The US dollar again weakened against the majors. The dollar index (#DX) fell by 0.55%. Yesterday the news background was calm. Important economic reports did not appear. The dynamics of the main currency pairs were largely influenced by technical factors. Pressure on the American currency is still put by the Chairman of the Federal Reserve at the conference in Jackson Hole. Janet Yellen avoided talking about the monetary policy. At the moment, the probability of an increase in the interest rate of the Fed in December of this year is 36.3%.

North Korea launched a missile that flew over the territory of Japan. Participants of the financial markets are monitoring the situation on the Korean peninsula. In the near future, the tension may again worsen, which will increase the demand for safe assets.

The single currency has renewed the extreme for the past two years. At the moment the EUR/USD quotes are testing the key level of 1.2000. Investors expect that the ECB may announce the reduction of the quantitative easing program at a meeting in September.

Market Indicators

Yesterday, the US stock indexes showed a variety of trends: #SPY (0.00%), #DIA (0.05%), #QQQ (+0.31%).

The 10year US government bonds yield continues to show negative dynamics. At the moment, the indicator is at the level of 2.112.12%.

The news feed on 2017.08.29:

At 17:00 (GMT+3:00) the consumer confidence index in the US will be published.

by JustMarkets, 2017.08.29