The US Currency Is Consolidating. Investors Expect the ECB Meeting

The US dollar is changing slightly against a basket of major currencies. The US dollar index (#DX) closed with a slight increase (+0.03%). Yesterday, mixed economic data from the US were published. Thus, the manufacturing PMI counted to 50.0 in July instead of the expected value of 51.0. New home sales increased from 604K to 646K in June. At the same time, market expectations were at the level of 660K.

Investors are focused on the ECB meeting. It is expected that the European Central Bank will not change the key marks of monetary policy following the meeting results, but will give signals to cut interest rates at the next meeting in September.

The US-China trade negotiations are also in the spotlight. The White House announced that a delegation led by US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer would go to China on Tuesday, July 30 for the next round of talks. Mnuchin expects progress and believes that more meetings will be needed, which are likely to take place later in Washington.

Yesterday, new UK Prime Minister Boris Johnson delivered a keynote speech and announced his readiness to exit the country from the European Union before October 31. He noted that he intended to conclude a new and better agreement with the EU. The official believes that the deal with the union, which developed Theresa May, is dead.

The "black gold" prices have been recovering after a sharp collapse the day before. At the moment, futures for the WTI crude oil are testing the mark of $56.25 per barrel.

Market Indicators

Yesterday, there was a variety of trends in the US stock markets: #SPY (+0.47%), #DIA (-0.27%), #QQQ (+0.70%).

The 10-year US government bonds yield has fallen. Currently, the indicator is at the level of 2.03-2.04%.

- German IFO business climate index at 11:00 (GMT+3:00);
- ECB interest rate decision at 14:45 (GMT+3:00);
- Statistics on durable goods orders in the US at 15:30 (GMT+3:00).

by JustMarkets, 2019.07.25

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.