The US Dollar Is Again in the Green. The Potential for Growth Remains. We Expect the Bank of Canada Decision

Yesterday, the US dollar strengthened against a basket of major currencies. The dollar index (#DX) updated two-week highs and closed in the positive zone (+0.19%). Positive economic data, as well as the growth of the US government bonds yield supported the US currency. Thus, ISM non-manufacturing PMI counted to 59.7 in February and turned out to be better than the forecasted value of 57.3. New home sales increased to 621K in December instead of 600K.

The Australian dollar weakened against the US dollar. Today, during the Asian trading session, weak Australia GDP has been published. Thus, GDP (q/q) grew by only 0.2% in the 4th quarter of 2018, while experts expected growth by 0.5%. GDP (y/y) increased by 2.3% instead of 2.5%.

The British pound also fell against the US currency. Financial market participants began to fix positions due to the uncertainty concerning Brexit. Talks between representatives of the UK and the EU were held yesterday in Brussels, which did not bring positive results and did not go well. Today, discussions will resume.

Investors expect the Bank of Canada interest rate decision. It is expected that the regulator will keep the key marks of monetary policy at the same level. We recommend paying attention to the comments by the Central Bank representatives.

The "black gold" prices are falling. At the moment, futures for the WTI crude oil have approached the mark of $56.00 per barrel. At 17:30 (GMT+2:00), a report on crude oil inventories will be published in the US.

Market Indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (-0.14%), #DIA (-0.03%), #QQQ (+0.07%).

At the moment, the 10-year US government bonds yield is at 2.70-2.71%.

The news feed on 06.03.2019:

- ADP nonfarm employment change in the US at 15:15 (GMT+2:00);
- Trade balance in the US at 15:30 (GMT+2:00);
- Bank of Canada interest rate decision at 17:00 (GMT+2:00);
- Ivey PMI at 17:00 (GMT+2:00);
- Fed's "Beige Book" at 21:00 (GMT+2:00).

We also recommend paying attention to the speeches by the FOMC members.

by JustForex, 2019.03.06

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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