Demand for the US Currency Is Still High

Yesterday, the US dollar slightly strengthened against the basket of major currencies. Support was provided by positive statistics from the United States. In June, the index of economic activity in the US manufacturing sector counted to 60.2, which is higher than the expected value of 58.4. Demand for the dollar remains at a high level due to the prospects for further interest rate rise by Fed. The US dollar index closed in the positive zone (+0.26%).

The euro was under pressure due to disagreements on migration policy between German Interior Minister and Chancellor Angela Merkel. Also, the fact that the US intends to impose duties on import of cars from the EU puts pressure on the euro. President of the United States Donald Trump believes that the EU behaves like China.

Today it has become known that the Reserve Bank of Australia left the interest rate unchanged at the level of 1.50% as well. In general, the news feed will be calm today, so investors will monitor the current information regarding the trade war.

The “black gold” prices show a positive dynamics. At the moment, futures for the WTI crude oil are testing a mark of $74.80 per barrel.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.21%), #DIA (+0.00%), #QQQ (+0.67%).

At the moment, the 10year US government bonds yield is at the level of 2.862.87%.

The index of economic activity in the UK construction sector at 11:30 (GMT+3:00).

by JustMarkets, 2018.07.03