The Demand for Risky Assets Is Still Low. The Conflict Between Washington and Beijing Is in the Spotlight

June 19, 2020

by JustForex

The US dollar has continued to grow against currency majors. The US dollar index closed in the green zone (+0.26%). Investors are concerned about the second wave of coronavirus. Thus, the number of infections has already exceeded 8.5 million people worldwide. Also, the pessimistic economic data were published in the US yesterday. Initial jobless claims have grown again and counted to 1.508K, while experts expected 1.300K. Investors have taken a wait-and-see attitude before the summit of EU leaders to be held today.

Recently, US Secretary of State Mike Pompeo held talks with Beijing. After the talks, US President Donald Trump has threatened again to cut ties with China. The White House administration said the United States was disappointed with China’s attitude during a meeting between Pompeo and Yang Jiechi, a high-ranking official of the Chinese Communist Party. The United States does not see any signs of progress in the deal, the obligations of which Beijing should fulfill.

The “black gold” prices have been growing. OPEC and partners have promised to fulfill their commitments to reduce production. Currently, futures for the WTI crude oil are testing the $40.10 mark per barrel. At 20:00 (GMT+3:00), Baker Hughes US rig count will be published.

Market indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (+0.04%), #DIA (-0.14%), #QQQ (+0.27%).

The 10-year US government bonds yield has declined. At the moment, the indicator is at the level of 0.71-0.72%.


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The news feed on 2020.06.19:
  • – UK retail sales data at 09:00 (GMT+3:00);
  • – Statistics on retail sales in Canada at 15:30 (GMT+3:00).

We also recommend paying attention to the speech by the Fed Chairman.

by JustForex

InvestMacro

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