The Dollar Index Has Reached Two-Year Highs

Last week, the greenback strengthened against a basket of world currencies. The dollar index (#DX) reached two-year highs and closed in the positive zone. Positive economic releases, as well as the growth of the US government bonds yield supported the US currency. The British pound is still under pressure. Financial market participants are concerned that Prime Minister Theresa May will not be able to approve her Brexit deal and may soon face a leadership problem. Investors expect up-to-date information regarding trade negotiations between Washington and Beijing.

Today, during the Asian trading session, positive data on Japan's GDP have been published. In the first quarter, the economy grew by 0.5%. Experts expected a decline by 0.1%. EU citizens will elect their candidates to the European Parliament from May 23. Investors will assess the last Fed meeting minutes, as well as important economic releases from the US, UK, Canada and the Eurozone.

Oil quotes show positive dynamics. At the moment, futures for the WTI crude oil are testing $63.75 per barrel.

Market Indicators

On Friday, the bearish sentiment prevailed in the US stock market: #SPY (-0.65%), #DIA (-0.66%), #QQQ (-1.02%).

The 10-year US government bonds yield is recovering. Currently, the indicator is at the level of 2.40-2.41%.

The news feed on 2019.05.20:

Today we recommend paying attention to the speeches by the FOMC representatives.

by JustForex, 2019.05.20

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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