by JustForex

The US dollar is being traded near three-week highs against a basket of major currencies. The 10-year US government bonds yield has moved away from recent lows due to the fact that the leading countries of the world intend to support their economies with various economic stimulus measures. Also, it became known that the United States extended the Huawei license. By extending the license, the company will still be able to purchase materials from US companies. A temporary license is extended until November 19th. Meanwhile, investors will closely monitor US-China trade relations. The US President has criticized the Fed for a “strong” dollar again. Donald Trump said the regulator should consider lowering the key interest rate by 100 basis points in the near future. The US dollar index (#DX) closed the trading session in the positive zone (+0.22%).

The euro fell against the US dollar after the publication of weak economic statistics. Thus, the Eurozone consumer price index rose only by 1.0% in July, while experts forecasted growth by 1.1%. The political situation in Italy is still unstable. German authorities are going to apply stimulus measures to avoid a recession in the country’s economy. Last week Chancellor of Germany, Angela Merkel, said that Germany’s economy is moving into a difficult phase.

The “black gold” prices are consolidating after growth the day before. Futures for the WTI crude oil are currently testing the $56.35 mark per barrel.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock markets: #SPY (+1.20%), #DIA (+0.95%), #QQQ (+1.59%).

The 10-year US government bonds yield has moved away from local highs. At the moment, the indicator is at the level of 1.57-1.58%.

Today, the publication of important economic news is not expected.

by JustForex