The Trade Conflict Between the US and China Is Still in the Spotlight

Yesterday, the US dollar weakened slightly against the basket of major currencies. The US dollar index (#DX) closed in the negative zone (0.12%). Trade conflict between the US and China continues. As it became known, from September 24, Chinese duties on American goods $60 billion worth will come into effect in response to the US actions. Also, China intends to file a complaint to WTO against the US.

The British pound weakened against the US currency after it became known that Prime Minister of the United Kingdom Theresa May intended to reject the deal with the EU regarding the Irish border. The EU suggested conducting more checks on the border with Northern Ireland after Brexit. However, Theresa May insists that the laws should be the same for the entire territory of the UK.

Yesterday, economic data were also published in the United Kingdom and the United States. Thus, the consumer price index in the UK rose to 2.7% in August and was better than the forecasted value of 2.4%. The number of building permits issued in the US dropped to 1.229M in August, while investors forecasted 1.310M. Today, a report on GDP of New Zealand has been published, which counted to 1.0% and was higher than the forecasted value of 0.8%. We expect important statistics from the UK and the US.

The “black gold” prices show positive dynamics. At the moment, futures for the WTI crude oil are testing a mark of $71.25 per barrel.

Market Indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (+0.11%), #DIA (+0.57%), #QQQ (0.08%).

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

The volume of retail sales in the UK at 11:30 (GMT+3:00);Philadelphia Fed manufacturing index at 15:30 (GMT+3:00);Existing home sales in the US at 17:00 (GMT+3:00)

by JustMarkets, 2018.09.20