The US Currency Is in the Green. China Prepares for the Escalation of the Trade War with the United States

June 13, 2019

by JustForex

The US dollar slightly strengthened against a basket of major currencies despite weak economic statistics. Inflation in the United States accelerated by only 0.1% in May, while experts forecasted an increase by 0.2%. A sharp increase in crude oil inventories and a decrease in oil prices supported the US currency. The US dollar index closed in the positive zone (+0.34%).

The US-China trade conflict is still in the spotlight. China’s Vice Premier Liu He said yesterday that the Chinese authorities intended to take measures to support the economy and keep ample liquidity in the financial sector amid growing US trade pressure. China is expected to correct the monetary supply in the near future, as well as to reduce interest rates to protect the economic development of the country in the case of an escalation of the trade war with the United States.

The “black gold” prices fell by 4% due to a sharp increase in US oil inventories. At the moment, quotes have been recovering. Futures for the WTI crude oil are testing $52.25 per barrel.

Market Indicators

Yesterday, the bearish sentiment was observed in the US stock market: #SPY (-0.18%), #DIA (-0.16%), #QQQ (-0.58%).

The 10-year US government bonds yield is consolidating. At the moment, the indicator is at the level of 2.10-2.11%.


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The news feed on 2019.06.13:

Today the publication of important economic news is not expected.

by JustForex

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