Currency Majors Have Become Stable. Investors Expect Key Central Bank Meetings and US Labor Market Report

Last week, the US dollar weakened significantly compared to its main competitors. The dollar index (#DX) has set new local lows and closed in the red zone. The conflict between Washington and Beijing is still in the spotlight. US President Donald Trump promised to call off Hong Kong's special status if the new Chinese law did not come into force. However, China is confident that this will do more harm to the United States than to China.

Currency majors are currently consolidating. Financial market participants expect meetings of the Reserve Bank of Australia, the Bank of Canada, the ECB, as well as the US labor market report for May. Investors also expect another round of negotiations on Brexit, which will begin tomorrow in advance of the EU summit on June 18-19. There is not much time left until December 31 – Brexit's deadline. Progress in the negotiations has not yet been observed. The EU has called on the UK to be more realistic as to what the country can achieve in the negotiations.

The "black gold" prices have become stable after a significant rally. Currently, futures for the WTI crude oil are testing the $35.15 mark per barrel.

Market indicators

On Friday, there was a variety of trends in the US stock market: #SPY (+0.45%), #DIA (-0.02%), #QQQ (+1.47%).

The 10-year US government bonds yield has declined. At the moment, the indicator is at the level of 0.65-0.66%.

• - German manufacturing PMI at 10:55 (GMT+3:00);
• - UK manufacturing PMI at 11:30 (GMT+3:00);
• - ISM manufacturing PMI at 17:00 (GMT+3:00).

by JustMarkets, 2020.06.01

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.