The US Dollar Is in the Red due to Trade Conflicts

The US dollar declined on Friday against a basket of major currencies due to threats by US President Donald Trump to impose duties on Mexican goods. The dollar index (#DX) closed in the negative zone (-0.39%). The demand for “safe” assets is still high. The Swiss franc and the Japanese yen have significantly strengthened against the greenback. US trade conflicts with China and Mexico had a negative impact on economic indicators. So, on Friday, Michigan consumer expectations and sentiment were published, which counted to 93.5 and 100.0 in May, respectively, and were worse than the expected values of 95.2 and 102.0.

On Friday, Canada GDP was also published. Thus, GDP (y/y) grew by 1.3%; GDP (q/q) increased by 0.5%, which turned out to be better than the forecasted growth by 0.4%. Today, during the Asian trading session, Chinese Caixin manufacturing PMI has been published, which has counted to 50.2 and has occurred to be better than the forecasted value of 50.0. We expect a number of important releases on economic activity.

The "black gold" prices are declining. At the moment, futures for the WTI crude oil are testing the mark of $53.00 per barrel.

Market Indicators

On Friday, aggressive sales were observed in the US stock market: #SPY (-1.35%), #DIA (-1.45%), #QQQ (-1.60%).

The 10-year US government bonds yield fell significantly. Currently, the indicator is at the level of 2.08-2.09%.

The news feed on 2019.06.03:

- German manufacturing PMI at 10:55 (GMT+3:00);
- UK manufacturing PMI at 11:30 (GMT+3:00);
- US ISM manufacturing PMI at 17:00 (GMT+3:00).

by JustForex, 2019.06.03

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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