Escalation of the Trade Conflict Continues. The US Dollar Is Still Under Pressure

June 11, 2019

by JustForex

During yesterday’s trading session, the US dollar strengthened slightly against a basket of major currencies. The American currency was supported by the decision of US President Donald Trump not to impose duties on Mexican goods. However, the US dollar is still under pressure due to rising expectations of lowering the interest rates by the Fed at upcoming meetings. The trade conflict between Washington and Beijing is in the spotlight. Yesterday, US President announced that he would increase tariffs on $300 billion worth of Chinese goods if his talks with President of the People’s Republic of China Xi Jinping did not take place in the upcoming G20 summit in Japan. The US dollar index closed yesterday in the positive zone (+0.23%).

The British pound has been declining after the publication of weak economic releases from the UK. GDP (m/m) fell by 0.4%, although experts expected a decline by only 0.1%. The manufacturing output (m/m) fell by 3.9% in April instead of the forecasted decline by 1.1%. Today we expect important statistics from the US and the UK.

The “black gold” prices have been growing after the fall the day before. Currently, futures for the WTI crude oil are testing $53.60 per barrel.

Market Indicators

Yesterday, bullish sentiment was observed in the US stock market: #SPY (+0.46%), #DIA (+0.28%), #QQQ (+1.17%).

The 10-year US government bonds yield rose slightly. Currently, the indicator is at the level of 2.15-2.16%.


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The news feed on 2019.06.11:

– Data on the UK labor market at 11:30 (GMT+3:00);
– Producer price index in the US at 15:30 (GMT+3:00).

by JustForex

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