The Dollar Index Reached Two-Week Highs. Political Instability in the US and the UK Is in the Focus of Attention

September 26, 2019

by JustForex

During yesterday’s trading, the US dollar strengthened significantly against a basket of major currencies. Yesterday, the dollar index (#DX) closed the trading session in the positive zone (+0.75%). The demand for greenback grew after statements by the US president about the possibility of concluding a trade deal with China. Yesterday, Donald Trump said that the deal could be concluded even earlier than everyone suspected.

News that Japan and the United States signed an agreement, which is the first stage of a trade deal between the two countries, put additional optimism. The agreement between US President, Donald Trump, and Japanese Prime Minister, Shinzo Abe, aims to regulate the trade in agricultural and industrial goods.

Also, optimistic economic data supported the US currency. So, yesterday, a report on new home sales was published, according to which the figure counted to 713K in August instead of 660K. At the same time, investors are worried about the likely start of Donald Trump’s impeachment, as well as early elections in the UK.

The “black gold” prices are consolidating. Currently, futures for the WTI crude oil are testing the $56.75 mark per barrel.

Market Indicators

Yesterday, there was the bullish sentiment in the US stock markets: #SPY (+0.59%), #DIA (+0.60%), #QQQ (+1.12%).


Free Reports:

Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter





Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.





The 10-year US government bonds yield rose slightly. At the moment, the indicator is at the level of 1.70-1.71%.

The Economic News Feed for 26.09.2019:
  • – Data on GDP in the US at 15:30 (GMT+3:00);
  • – Initial jobless claims in the US at 15:30 (GMT+3:00);
  • – Pending home sales in the US at 17:00 (GMT+3:00).

We also recommend paying attention to the speeches by the President of the ECB Draghi and the FOMC representatives.

by JustForex

InvestMacro

InvestMacro is a finance website dedicated to helping investors make better informed decisions through educational content and products