The Dollar Index Closed in the Negative Zone. The US Currency Is Under Pressure

Yesterday, the US dollar moved away from local highs. The dollar index (#DX) closed in the negative zone (0.22%). The US currency is under pressure due to the strained trade relations between the US and China. Uncertainty concerning the North American Free Trade Agreement (NAFTA) also worsened investors’ sentiments. The US published ambiguous data on the real estate market. In May, the number of issued building permits dropped by 4.6% to 1.301M, while experts expected the value of 1.350M. At the same time, the volume of new homes construction increased by 5.0% to 1.350M.

Yesterday, at a forum in Portugal, the ECB President Mario Draghi said that the regulator would be consistent in the further tightening of monetary policy. The official believes that the target inflation rate will be achieved only by 2020 due to the uncertainty in the markets. Today, investors will follow the next speeches by the ECB President and the Fed Chairman Powell.

The “black gold” prices are steadily rising. At the moment, futures for the WTI crude oil are testing a mark of $65.25 per barrel. At 17:30 (GMT+3:00), a report on the US crude oil inventories will be published.

Market Indicators

Major US stock indices closed the trading session in the negative zone: #SPY (0.38%), #DIA (1.14%), #QQQ (0.28%).

The 10year US government bonds yield is rising. At the moment the indicator is at the level of 2.892.90%.

Existing home sales in the US at 17:00 (GMT+3:00).

We also recommend paying attention to the speeches by the ECB and the Fed heads.

by JustMarkets, 2018.06.20