The Greenback Has Become Stable. Investors Expect Additional Drivers

August 4, 2020

During yesterday’s trading session, the US dollar rose slightly against a basket of currency majors. The US dollar index (#DX) closed in the positive zone (+0.20%). However, today the US currency is declining. The fact that US lawmakers couldn’t agree on a new stimulus package, while recently Europe was able to agree on a €750 billion recovery fund, puts additional pressure. The narrowing of the yield spread between the EU and US government bonds also has a negative effect. Yesterday, Democrats in the US Congress and White House negotiators announced that they had made progress on a new bill to help the economy amid the coronavirus. However, it is not yet clear whether the deal will be enough for the US economic recovery to catch up with Europe and Asia.

Today, during the Asian trading session, the Reserve Bank of Australia has decided on the key interest rate. As expected, the regulator left the indicator unchanged at 0.25%. Also, optimistic data on the volume of retail sales was published, which increased by 2.7% in June, while experts forecasted the growth by 2.4%.

The “black gold” prices are consolidating. At the moment, futures for the WTI crude oil futures are testing the $40.55 mark per barrel. At 23:30 (GMT+3:00), API weekly crude oil stock will be published.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+0.70%), #DIA (+0.90%), #QQQ (+1.35%).

The 10-year US government bonds yield is consolidating. At the moment, the indicator is at the level of 0.54-0.55%.

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