US-Beijing Trade Conflict Is Still in the Spotlight

The US dollar continued its growth against the basket of major currencies. The dollar index (#DX) closed in the positive zone (+0.20%). Trade disputes between the US and China are still in the focus of attention. The provocation of a trade conflict is “naked economic terrorism,” one of the senior Chinese diplomats said on Thursday, ramping up the rhetoric against the United States. Trade tension between Washington and Beijing sharply increased earlier this month after the Trump administration accused China of “abandoning” its previous promises to make structural changes to its economic practice. Also, as it became known, Beijing intends to use rare-earth metals as a leverage of pressure in the trade war with the United States.

The euro weakened after the publication of weak economic statistics from Germany. Thus, the number of unemployed in Germany increased by 60K in May, while experts expected a decrease by 8K. The unemployment rate also rose to 5.0% from 4.9%.

The Bank of Canada decided on the interest rate. As expected, the regulator left the indicator unchanged at 1.75%. Today we expect data on US GDP.

The "black gold" prices show positive dynamics. At the moment, futures for the WTI crude oil are testing $59.60 per barrel. At 18:00 (GMT+3:00) data on crude oil inventories will be published in the US.

Market Indicators

Yesterday, the main US stock indices closed in the negative zone: #SPY (-0.67%), #DIA (-0.87%), #QQQ (-0.82%).

The 10-year US government bonds yield is recovering. Currently, the indicator is at the level of 2.27-2.28%.

The news feed on 2019.05.30:

- Data on US GDP at 15:30 (GMT+3:00);
- Pending home sales in the US at 17:00 (GMT+3:00).

by JustForex, 2019.05.30

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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