The US Dollar Is Recovering

During yesterday's trading session, the US dollar started growing against a basket of major currencies. The dollar index (#DX) closed in the green zone (+1.60%). Investors are expecting coordinated support measures from the largest economies in the world. The US Centers for Disease Control and Prevention on Tuesday reported 696 new cases of coronavirus and an increase in deaths to 25. Market participants also expect the US Federal Reserve to cut interest rates next week. US President Donald Trump on Tuesday called the Fed "pathetic" and said the regulator should cut interest rates to the levels of "competitor nations."

Also, D. Trump planned to cut payroll tax temporarily, as well as to help certain industries to support the US economy. However, Congress has not yet supported his plan. Finance Minister, Steven Mnuchin, met with the Democrat leader in the House of Representatives, Nancy Pelosi, to discuss measures to support the economy. However, it is not yet clear whether any progress has been made in the negotiations. Democrats in Congress are working on their own set of measures, which is aimed at expanding assistance to the unemployed and workers without paid sick leave. They believe that a general tax reduction is a broad measure, and these funds can be effectively used.

The "black gold" prices are consolidating. Currently, futures for the WTI crude oil futures are testing the $33.50 mark per barrel. At 16:30 (GMT+2:00), a report on US crude oil inventories will be published.

Market indicators

Yesterday, there were aggressive purchases in the US stock market: #SPY (+5.71%), #DIA (+4.92%), #QQQ (+5.45%).

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

• - GDP data in the UK at 11:30 (GMT+2:00);
• - Manufacturing production in the UK at 11:30 (GMT+2:00);
• - Bank of England interest rate decision at 14:00 (GMT+2:00);
• - Core consumer price index in the US at 14:30 (GMT+2:00).

by JustMarkets, 2020.03.11

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.