The Dollar Index Is Testing Local Lows

The US dollar slightly weakened against the basket of major currencies during yesterday's trading. The US dollar index (#DX) closed in the negative zone (-0.19%). The demand for risky assets has grown significantly amid the optimistic news. The United States and Mexico reached an agreement on the North American Free Trade Area (NAFTA). Investors expect Canada to join the new trade agreement. The British pound is growing after the statements by the EU chief Brexit negotiator, Barnier. According to the official, the European Union is ready to offer Britain a "unique" deal after its exit from the union. Today, we expect important economic statistics from Germany and Canada.

In general, demand for the US currency is still high. Yesterday, the US dollar was supported by positive data on the US GDP. Thus, in the second quarter, the GDP indicator counted to 4.2% and was better than the forecasted value of 4.0%. However, the US pending home sales index fell to -0.7% in July instead of 0.3%.

The "black gold" prices are rising after the release of data on crude oil inventories in the US. At the moment, futures for the WTI crude oil are testing a mark of $69.70 per barrel.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.54%), #DIA (+0.26%), #QQQ (+1.15%).

At the moment, the 10-year US government bonds yield is at the level of 2.88%-2.89%.

The news feed on 2018.08.30:

- Report on the labor market in Germany at 10:55 (GMT+3:00);
- Data on Canada GDP at 15:30 (GMT+3:00).

by JustForex, 2018.08.30

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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