Demand for the US Dollar Weakened After Donald Trump's Statements

Yesterday, the US dollar kept support after the speech of the Fed`s chairman, Jerome Powell. The official reported on the improvement of the US economy, which increased the likelihood of a further increase in the Fed's interest rate this year. However, the US currency was under pressure after the US President Donald Trump stated that he intended to introduce tariffs for imports of steel and aluminum. As a result, the US currency lost its achievements at the beginning of the day. The US dollar index (#DX) closed trading in the negative zone (-0.36%).

The pound is under pressure due to the renewed fears about Brexit. In February, the index of business activity in the manufacturing sector in the UK declined from 55.3 to 55.2. At the same time, the indicator exceeded market expectations at 55.1. The British currency moved away from local lows and closed the trading session in the positive zone.

The "black gold" prices are consolidating. Futures for the WTI crude oil are testing a mark of $61.85 per barrel. We recommend paying attention to the data on the US Baker Hughes oil rig count at 20:00 (GMT+2:00).

Market Indicators

Yesterday, there were aggressive sales in the US stock market: #SPY (-1.45%), #DIA (-1.69%), #QQQ (-1.63%).

At the moment, the 10-year US government bonds yield is at the level of 2.81-2.82%.

The news feed on 2018.03.02:

- The business activity index in the construction sector in the UK at 11:30 (GMT+2:00);
- Canada's GDP data at 15:30 (GMT+2:00).

Also, we recommend you to pay attention to the speech of the Great Britain Prime Minister.

by JustForex, 2018.03.02

We advise you to get acquainted with the daily forecasts for the major currency pairs.

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.

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