The Dollar Index Is Consolidating. Investors Expect Additional Drivers

The US dollar does not show clear dynamics relative to the basket of major currencies. Yesterday, the US dollar index (#DX) closed the trading session with a slight decrease (-0.14%). Investors expect additional drivers and closely follow the US-China talks. Today, important economic reports will be published. We recommend paying special attention to statistical data from the United States: preliminary data on ADP nonfarm employment change; ISM non-manufacturing PMI. These releases may have a significant impact on the dynamics of currency majors in the short term.

The British pound was under pressure after the "dovish" statements by the Bank of England Governor, Mark Carney. The official said that the global trade war and the threat of no-deal Brexit were risks to the British economy, which might need additional measures to cope with a downturn. Also, weak data on the index of economic activity in the UK construction sector for June was published yesterday. The figure counted to 43.1, while experts forecasted 49.3.

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 $56.60 a barrel. At 17:30 (GMT+3:00) crude oil inventories will be published in the US.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.26%), #DIA (+0.26%), #QQQ (+0.40%).

The 10-year US government bonds yield fell significantly. At the moment, the indicator is at the level of 1.94-1.95%.

- Indicators on economic activity in Germany and the Eurozone at 10:55 (GMT+3:00) and 11:00 (GMT+3:00), respectively;
- Services PMI in the UK at 11:30 (GMT+3:00);
- ADP nonfarm emloyment change at 15:15 (GMT+3:00);
- Initial jobless claims in the US at 15:30 (GMT+3:00);
- ISM non-manufacturing PMI at 17:00 (GMT+3:00).

by JustMarkets, 2019.07.03

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.