Demand for Risky Assets Has Weakened

June 12, 2020

by JustForex

During yesterday’s trading session, the greenback strengthened significantly against a basket of world currencies. The dollar index (#DX) closed in the green zone (+0.82%). Major stock indices and “black gold” prices have fallen sharply. Financial market participants are concerned about the second wave of COVID-19 outbreak. The United States reported more than 2 million coronavirus cases as of June 12, as well as a re-wave of infection in the most populous states.

The UK has published pessimistic economic releases. The Office for National Statistics reported that GDP fell by 20.4% (m/m), which is below market expectations at 18.7%. The volume of manufacturing production decreased by 24.3% compared to the forecasted value of 15.8%.

Oil quotes have set new local lows. Currently, futures for the WTI crude oil are testing the $36.00 mark per barrel. We recommend paying attention to the US Baker Hughes rig count at 20:00 (GMT+3:00).

Market indicators

Yesterday, there were aggressive sales in the US stock market: #SPY (-5.76%), #DIA (-6.81%), #QQQ (-4.95%).

The 10-year US government bonds yield has been growing. At the moment, the indicator is at the level of 0.70-0.71%.


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The news feed on 2020.06.12:
  • – Eurozone industrial production at 12:00 (GMT+3:00).

by JustForex

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