Euro Is Still Under Pressure

Yesterday, the US dollar rose relative to the basket of major currencies. The US currency is strengthening against the weakness of euro, as well as falling prices on commodity markets. Also, the US dollar is supported by the North KoreaUS summit in the near future. The US dollar index strengthened significantly yesterday and closed in the positive zone (+0.72%). Today, financial market participants expect important economic statistics from the US and the Eurozone, which will determine the further alignment of forces on currency majors.

Euro is under pressure due to political instability in Italy and weakening of the Eurozone economic indicators. Because of this situation, the forecasts for an increase in the ECB interest rate have been revised. Today, the Bank of Canada will announce its decision on monetary policy. It is expected that the regulator will leave the interest rate unchanged at 1.25%. We recommend paying attention to the comments of the Central Bank representatives.

The “black gold” prices are slightly decreasing. At the moment, futures for the WTI crude oil are testing a mark of $66.80 per barrel.

Market Indicators

Yesterday, the bearish sentiment was observed in the US stock market: #SPY (1.15%), #DIA (1.58%), #QQQ (0.44%).

At the moment, the 10year US government bonds yield is at the level of 2.872.88%.

Report on the labor market in Germany at 10:55 (GMT+3:00);ADP nonfarm employment change at 15:15 (GMT+3:00);GDP data in the US at 15:30 (GMT+3:00);Bank of Canada interest rate decision at 17:00 (GMT+3:00);Fed’s “Beige Book” at 21:00 (GMT+3:00).

by JustMarkets, 2018.05.30