Demand for Risky Assets Has Weakened due to Tensions Between the US and China

May 22, 2020

by JustForex

The US currency has been growing against a basket of currency majors. The US dollar index (#DX) closed in the positive zone (+0.27%). The growing tension between the US and China after the PRC announced its intention to consider the Hong Kong national security bill, is in the spotlight. This bill provides for a ban on separatist activities and is aimed at countering terrorism and any outside interference. In turn, the United States has prepared a bill imposing sanctions against Chinese officials and organizations that monitor compliance with national security laws in Hong Kong.

Yesterday, ambiguous US economic data were published. The number of initial jobless claims has risen by 2,438K again, while experts predicted an increase by 2,400K. However, previous data was revised upwards from 2,981 K to 2,687 K. Philadelphia Fed manufacturing index fell by 43.1 instead of 41.5.

The “black gold” prices are consolidating. Currently, futures for the WTI crude oil are testing the $32.05 mark per barrel.

Market indicators

Yesterday, there was the bearish sentiment in the US stock market: #SPY (-0.69%), #DIA (-0.29%), #QQQ (-1.09%).

The 10-year US government bonds yield has declined. At the moment, the indicator is at the level of 0.64-0.65%.


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The news feed on 2020.05.22:
  • – UK retail sales data at 09:00 (GMT+3:00);
    – ECB monetary policy meeting account at 14:30 (GMT+3:00);
    – Canada’s retail sales report at 15:30 (GMT+3:00).

by JustForex

InvestMacro

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