Demand for the US Currency Is Still High

Yesterday, the US dollar strengthened against currency majors. Demand for the American currency is still high due to concerns about international trade and instability in the markets of developing countries. The dollar index (#DX) closed the trading session in the positive zone (+0.31%). Additional support was provided by positive statistics. In August, the index of economic activity in the US manufacturing sector counted to 61.3, which was higher than market expectations of 57.6.

Today, Bank of Canada interest rate decision will be the key event. Experts forecast that the regulator will keep the interest rate at the previous level of 1.50%. It should be noted that more than 75% of financial market participants expect that the Central Bank will tighten monetary policy in October. We recommend paying attention to the comments by the Bank of Canada representatives.

Oil quotes are declining. At the moment, futures for the WTI crude oil are testing a mark of $69.15 per barrel.

Market Indicators

Yesterday, the major US stock indices closed in the negative zone: #SPY (-0.17%), #DIA (-0.05%), #QQQ (-0.43%).

The 10-year US government bonds yield shows positive dynamics. At the moment, the indicator is at the level of 2.89-2.90%.

The news feed on 05.09.2018:

- A number of indices of economic activity in the Eurozone at 11:00 (GMT+3:00);
- The index of economic activity in the UK services sector at 11:30 (GMT+3:00);
- Bank of Canada interest rate decision at 17:00 (GMT+3:00).

by JustForex, 2018.09.05

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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