Demand for the US Currency Has Resumed

Yesterday, the US dollar strengthened against major currencies. Demand for the US currency increased after the release of optimistic statistics on the US GDP. According to preliminary data, the growth of the country's economy in the fourth quarter of 2018 counted to 2.6% year on year, which was higher than experts' expectations at the level of 2.3%. Additional support for the greenback is provided by an increase in the 10-year US government bonds yield. Today, the US dollar is testing a 10-week high against the Japanese yen. The dollar index (#DX) is tending to grow.

The political uncertainty concerning Brexit remains. At the moment, the GBP/USD quotes have become stable. Investors began to partially fix positions after significant growth over the past two weeks. Financial market participants are waiting for up-to-date information regarding trade negotiations between the US and China. Today, we expect the publication of important economic reports from the Eurozone, the US, and Canada.

The "black gold" prices have recovered all losses after a sharp collapse at the beginning of this week. At the moment, futures for the WTI crude oil are testing the mark of $57.65 per barrel. We recommend paying attention to data on drilling activity in the US at 20:00 (GMT+2:00).

Market Indicators

Yesterday, the major US stock indices closed in the negative zone: #SPY (-0.19%), #DIA (-0.23%), #QQQ (-0.23%).

The 10-year US government bonds yield shows positive dynamics. At the moment, the indicator is at the level of 2.72-2.73%.

The news feed on 01.03.2019:

- German manufacturing PMI at 10:55 (GMT+2:00);
- Report on the labor market in Germany at 10:55 (GMT+2:00);
- Eurozone consumer price index at 12:00 (GMT+2:00);
- Canada GDP at 15:30 (GMT+2:00);
- ISM manufacturing PMI at 17:00 (GMT+2:00).

by JustForex, 2019.03.01

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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