The Dollar Index Is Keeping Current Levels. The British Economy Falls Into Recession

The US dollar shows a variety of trends against a basket of currency majors. The US dollar index (#DX) closed yesterday's trading session with a slight increase. The demand for greenback is supported by the growth of US government bonds yield. The 10-year US treasury bonds yield has shown the largest gain in two months ahead of the largest 10-year bond auction in history, to be held today.

The US dollar is also supported by the investors' hopes for the recovery of the country's economy after the crisis caused by the COVID-19 pandemic. However, at the same time, the uncertainty about new stimulus measures in the US limits the growth of the American currency. Meanwhile, White House officials and Congressional Democrats have announced their intention to resume negotiations on a new stimulus package, although they could not agree previously.

The UK economy falls into a recession. According to preliminary data from the Office for National Statistics (ONS), the country's economy collapsed by 20.4% in the second quarter of 2020 compared to the previous three months. This is the most significant drop since 1955. The decline in GDP was recorded for the second quarter in a row.

Today, during the Asian trading session, the Reserve Bank of New Zealand has decided on the interest rate. The regulator left the indicator unchanged at 0.25% per annum.

The "black gold" prices are growing. At the moment, futures for the WTI crude oil are testing the $42.25 mark per barrel. At 17:30, US crude oil inventories will be published.

Market indicators

Yesterday, there was the bearish sentiment in the US stock market: #SPY (-0.83%), #DIA (-0.34%), #QQQ (-1.89%).

The 10-year US government bonds yield is growing. At the moment, the indicator is at the level of 0.66-0.67%.

• - Report on inflation in the US at 15:30 (GMT+3:00).

by JustMarkets, 2020.08.12

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.