Statements by the Fed Chairman Have Supported the US Dollar

May 14, 2020

by JustForex

The US dollar has strengthened again relative to a basket of currency majors. The US dollar index (#DX) closed in the negative zone (+0.34%). The US currency has been growing after a speech by Fed Chairman Jerome Powell. The official said that the interest rate is unlikely to be transferred to the negative zone. Powell also said that a pandemic would cause long-term damage to the economy, and the prospects for recovery remain uncertain.

UK published ambiguous GDP data yesterday. The Office for National Statistics reported that the country’s GDP fell by 2.0% (q/q) in the first quarter. At the same time, experts forecasted a 2.5% drop (q/q). Aussie came under pressure after the release of a weak report on the Australian labor market.

The “black gold” prices are rising. Currently, futures for the WTI crude oil are testing the $26.40 mark per barrel.

Market indicators

Yesterday, there was the bearish sentiment in the US stock market: #SPY (-1.77%), #DIA (-2.21%), #QQQ (-1.25%).

The 10-year US government bonds yield has fallen again. At the moment, the indicator is at the level of 0.61-0.62%.


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The news feed on 2020.05.14:
  • – Initial jobless claims in the US at 15:30 (GMT+03:00).

by JustForex

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