The Dollar Index Is Testing an Annual Maximum

Yesterday, the US dollar updated this year’s high against the basket of major currencies before the Donald Trump’s decision about the US exit from the Iran nuclear deal. There were rumors that the US intended to exit from the deal, and also promised to tighten sanctions against Tehran. The dollar was also supported by the speech of the Federal Reserve Chairman Jerome Powell on further monetary policy tightening. The US dollar index (#DX) closed in the positive zone (+0.38%) yesterday.

It should be recalled that in 2015, an agreement between the United States, France, Germany, Britain, Russia and China, was signed. According to it, Iran strictly limited the enrichment of uranium in order to show that it did not intend to develop an atomic bomb. In response to such actions, the participants of the deal softened the sanctions against Tehran. However, the US president was dissatisfied with the terms of the deal, since it did not include the limitation of the development of ballistic missile program in Tehran.

The “black gold” prices are growing after the decision of the US president to exit the nuclear deal, which may lead to the reduction in oil deliveries to the world market. Futures for the WTI crude oil are testing a mark of $71. At 17:30 (GMT+3:00), a report on crude oil inventories in the United States will be published.

Market Indicators

Yesterday, there was no unidirectional trend in the US stock market: #SPY (+0.00%), #DIA (+0.00%), #QQQ (0.10%).

At the moment, the 10year US government bonds yield is at the level of 2.972.99%.

Producer price index in the US at 15:30 (GMT+3:00).

by JustMarkets, 2018.05.09