The US Dollar Is Consolidating

by JustForex

The US currency does not show a defined trend against its main competitors. The dollar index (#DX) closed yesterday’s session with a slight increase (+0.04%). On Friday, the dollar weakened amid hopes that the US could negotiate new incentives to reduce the need for a safe-haven currency. Donald Trump’s administration has offered a new $1.8 trillion economic aid package. However, this offer did not receive government support: Democrats believe that it is not comprehensive enough, and Republicans are worried that it will only increase the country’s accumulated debts. Also, financial market participants are closely following the US election campaign. According to polls, the Democratic presidential candidate Joe Biden is in the lead, while the position of the incumbent President Donald Trump is rapidly deteriorating.

On Monday, the Chinese yuan weakened after the People’s Bank of China said it would cut the reserve requirement ratio for financial institutions on some forward foreign exchange transactions. Today, during the Asian trading session, quite ambiguous economic data have been published in the PRC. The volume of exports increased by 9.9% in September, while experts expected growth by 10.0%. At the same time, the volume of imports increased by 13.2% in September, which turned out to be better than the forecasted growth by 0.3%. The trade surplus counted to 37.00B instead of 58.00B.

The “black gold” prices have become stable. At the moment, futures for the WTI crude oil are testing the $39.65 mark per barrel.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+1.61%), #DIA (+0.88%), #QQQ (+3.09%).

The 10-year US government bonds yield is consolidating. The indicator has reached 0.75-0.76%.

• – UK labor market data at 09:00 (GMT+3:00);
• – German ZEW economic sentiment index at 12:00 (GMT+3:00);
• – US inflation report at 15:30 (GMT+3:00).

by JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.