Strained Relations Between China and the US Led to the Dollar Decrease

Yesterday, the US currency fell against the major currencies, after China imposed import duties on some goods from the US at a rate of up to 25%. Such actions led to tension between the US and China. Investors worry again that a trade war may begin. Yesterday, the US dollar index (#DX) closed in the negative zone (0.13%). The index of business activity in the US manufacturing sector counted to 59.3 and was worse than the forecasted mark of 60.1.

Today, there was the Reserve Bank of Australia meeting, at which the regulator left the interest rate at the previous level of 1.50%. Also, a report on the volume of retail sales in Germany in February was published, according to which the indicator fell by 0.7%, which is below the forecasted value of +0.7%.

The “black gold” prices are consolidating after a significant decline during yesterday’s trading (more than 3%). At the moment, futures for the WTI crude oil are testing a mark of $63.10 per barrel. At 23:30 (GMT+3:00), a report on the API weekly crude oil stock will be published.

Market Indicators

Yesterday, there were aggressive sales in the US stock market: #SPY (2.16%), #DIA (2.17%), #QQQ (2.89%).

At the moment, the 10year US government bonds yield is at the level of 2.732.74%.

the index of business activity in the manufacturing sector in Germany at 10:55 (GMT+3:00);the index of business activity in the manufacturing sector in the UK at 11:30 (GMT+3:00).

by JustMarkets, 2018.04.03