The American Currency Covers Losses. The British Pound is Under Pressure

The US dollar began to strengthen against the basket of major currencies after a decline last week. Concerns about the trade war have receded into the background, which has led to an increase in demand for risky assets. Investors expect important economic data in the second half of the week. The US dollar index (#DX) closed in the positive zone (+0.03%) yesterday.

The British pound significantly weakened after two members of the UK Cabinet, Brexit Secretary David Davis and Foreign Secretary Boris Johnson, resigned. The ministers left their posts, as they did not agree on future economic relations between the UK and the EU after the country would exit the European Union. The British government intends to keep close economic relations, as well as to create a free trade zone of Great Britain with European countries. This position does not suit the rigid supporters of Brexit, who insist on the introduction of customs duties in accordance with WTO tariffs.

The “black gold” prices continue to rise. At the moment, futures for the WTI crude oil are testing a mark of $74.30 per barrel.

Market Indicators

Yesterday, the major US stock indices closed in the positive zone: #SPY (+0.90%), #DIA (+1.32%), #QQQ (+0.90%).

At the moment, the 10year US government bonds yield is at the level of 2.852.86%.

Manufacturing production in the UK at 11:30 (GMT+3:00);ZEW economic sentiment index in Germany at 12:00 (GMT+3:00);JOLTS job openings in the US at 17:00 (GMT+3:00).

by JustMarkets, 2018.07.10