Currency Majors Are Consolidating

Last week, trading on currency majors was very active. However, a unidirectional trend was not observed. On Friday, August 31, the dollar index (#DX) moved away from local lows and closed the trading session in the positive zone (+0.42%). Investors continue to assess the risks of trade conflict between the US and China. The United States and Mexico reached an agreement on the North American Free Trade Area (NAFTA). However, negotiations with Canada were fruitless.

Today, trading activity may be reduced due to holidays in the US and Canada. Financial market participants expect meetings of the Reserve Bank of Australia and the Bank of Canada. It is expected that regulators will keep key interest rates at the previous level of 1.50%. On Friday, September 7, the US will publish a report on the labor market, which may have a significant impact on the dynamics of major currency pairs.

Oil quotes are moderately declining. At the moment, futures for the WTI crude oil are testing a mark of $69.75 per barrel.

Market Indicators

On Friday, the major US stock indices showed mixed results: #SPY (0.00%), #DIA (-0.06%), #QQQ (+0.13%).

At the moment, the 10-year US government bonds yield is at the level of 2.86-2.87%.

The news feed on 03.09.2018:

- The index of economic activity in the manufacturing sector in Germany at 10:55 (GMT+3:00);
- The index of economic activity in the UK manufacturing sector at 11:30 (GMT+3:00).

by JustForex, 2018.09.03

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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