Investors Have Taken a Wait-and-See Attitude Before the G20 Summit in Japan

The US dollar shows mixed results against a basket of world currencies. Investors have taken a wait-and-see attitude before the G20 summit in Japan, which will start tomorrow. Financial market participants are counting on a breakthrough in the US-China trade relations. The US currency was supported by statements by US Treasury Secretary, Steven Mnuchin, that the US-China trade agreement was almost 100% done, and he believed that negotiations between Donald Trump and Xi Jinping in Japan would succeed. The US dollar index (#DX) closed yesterday in a positive zone (+0.08%).

Trump and Xi Jinping should meet on Saturday at the G20 summit. The result of this meeting will affect not only the world economy but also all financial markets that have been suspended for the last two years. According to the South China Morning Post, the United States and China intend to declare a truce in the trade war ahead of the G20 summit to resolve disputes during the meeting. The condition for holding a meeting between Xi Jinping and Donald Trump in Osaka was to delay the imposition of additional duties by the United States on Chinese goods.

The "black gold" prices have been declining after a significant increase the day before. At the moment, futures for the WTI crude oil are testing the mark of $59.00 per barrel.

Market Indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (-0.10%), #DIA (-0.02%), #QQQ (+0.47%).

The 10-year US government bonds yield has been growing. Currently, the indicator is at the level of 2.06-2.07%.

The news feed on 2019.06.27:

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

by JustForex, 2019.06.27

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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