The US Currency Is Under Pressure due to the Trade Conflict Between the US and China

The US dollar slightly strengthened against a basket of major currencies during yesterday's trading. However, the US currency is under pressure due to news of the complicated relationship between the United States and China. The US Trade Representative, Robert Lighthizer, said that US duties of 10-25% on Chinese goods $200 billion worth would be introduced on Friday. He noted that the United States decided to raise duties since China tried to revise the almost ready trade agreement. The dollar index (#DX) closed in the positive zone (+0.10%).

The Australian dollar strengthened significantly against the US currency after the publication of optimistic data from Australia. The Reserve Bank of Australia left the interest rate unchanged at 1.50%, as experts expected. Also, a report on retail sales was published, which rose by 0.3% in March, although experts expected growth by 0.2%.

It also became known that the British Prime Minister Theresa May prepared a "scenario" in case of second Brexit referendum. The official hopes that the UK will be able to exit the EU without an additional vote, but she is ready for the parliament to demand such an option.

The "black gold" prices are rising slightly. At the moment, futures for the WTI crude oil are testing the mark of $62.15 per barrel. At 23:30 (GMT+3) API weekly crude oil stock will be published.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock market: #SPY (-0.41%), #DIA (-0.26%), #QQQ (-0.61%).

The 10-year US government bonds yield is declining. Currently, the figure is at the level of 2.48-2.49%.

The news feed on 2019.05.07:

- JOLTS job openings at 17:00 (GMT+3).

by JustForex, 2019.05.07

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.

Open Account

Get Free Analytics

* required fields