The US Currency Is Still Under Pressure

The US dollar has reached a low for three months against the basket of major currencies after the Fed meeting. The US currency is still under pressure since the regulator may reduce the key interest rate in the near future. The US dollar index #DX closed in the negative zone (0.59%) yesterday.

Yesterday, the Bank of England left a key interest rate unchanged at 0.75%, as investors forecasted. At the same time, the regulator lowered the UK economic growth forecast to zero in the second quarter of 2019 and pointed out the risks associated with growing fears of nodeal Brexit. Also, a rather weak report on retail sales in the UK for May was published.

Mixed economic data from the US were published yesterday. Philadelphia Fed manufacturing index increased by only 0.3% in June, while experts expected growth by 10.6. However, initial jobless claims counted to 216K instead of 220K. Today we expect a report on existing home sales in the US, as well as a number of indicators on economic activity in the Eurozone.

The “black gold” prices are rising. At the moment, futures for the WTI crude oil are testing the mark of $57.25 per barrel.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.96%), #DIA (+0.95%), #QQQ (+0.93%).

The 10year US government bonds yield has become stable after a significant collapse the day before. Currently, the indicator is at the level of 2.022.03%.

Statistics on economic activity in Germany and the Eurozone at 10:30 (GMT+3:00) and 11:00 (GMT+3:00);Core retail sales in Canada at 15:30 (GMT+3:00);Existing home sales in the US at 17:00 (GMT+3:00).

by JustMarkets, 2019.06.21