The Dollar Index Is Testing Annual Highs. Bank of England’s Inflation Report Hearings Are in the Focus of Attention

Yesterday, the 10year US government bonds yield moved away from local highs. Investors began to partially fix the profit on the American currency. The US dollar index (#DX) closed the trading session with a slight decrease (0.09%). At the same time, demand for the US dollar is at a fairly high level. ChinaUS decision on keeping peaceful trade relations between them supports the US currency. Countries will not increase duties on imports of each other’s goods, and China, in turn, intends to increase the purchase of goods and services from the United States.

Euro is still under pressure due to political uncertainty in Italy. Today, investors took a waitandsee position before inflation report hearings in the UK, which may have a significant impact on the dynamics of the pound rate. Also, investors are waiting for the publication of the minutes of the US Federal Reserve last meeting on Wednesday.

The “black gold” prices are rising. At the moment, futures for the WTI crude oil are testing a mark of $72.50. At 23:30 (GMT+3:00), a report on the API weekly crude oil stock will be published.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.75%), #DIA (+1.19%), #QQQ (+0.56%).

At the moment, the 10year US government bonds yield is at the level of 3.063.07%.

Inflation report hearings in the UK at 12:00 (GMT+3:00).

We also recommend paying attention to the speech by the Bank of England governor Carney.

by JustMarkets, 2018.05.22