The US Dollar Is in the Green. Growth Potential Is Still High

The US dollar rose significantly against a basket of major currencies after the meeting between the US President Donald Trump and Chinese President Xi Jinping at the G20 summit in Japan. The US dollar index (#DX) closed in the positive zone (+0.78%). Donald Trump said that US-China trade talks have already begun. The US President said that this deal should be more beneficial for the United States than for China since China had a big advantage for many years. Trump also noted that the biggest deal in history, not only in trade, could be concluded between the United States and China.

Optimistic economic data also supported the US currency. So, ISM manufacturing PMI was published yesterday, which counted to 51.7 in June and was higher than the forecasted value of 51.0.

Yesterday, weak economic data from the Eurozone and the UK were published. Thus, German manufacturing PMI fell to 45.0 in June and was worse than the expected value of 45.4. The number of unemployed in Germany decreased by 1K in June instead of 3K. The index of economic activity in the UK manufacturing sector fell to 48.0 in June, while experts forecasted 49.2.

Today, during the Asian trading session, the Reserve Bank of Australia has decided on a key interest rate. As expected, the regulator lowered the key interest rate by 25 basis points to 1.00%.

The "black gold" prices are declining after growth the day before. At the moment, futures for the WTI crude oil are testing the mark of $58.90 per barrel. At 23:30 (GMT+3:00) API weekly crude oil stock will be published.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.91%), #DIA (+0.42%), #QQQ (+1.35%).

The 10-year US government bonds yield is consolidating. At the moment, the indicator is at the level of 2.00-2.01%.

The News Feed on 2019.07.02:

- The index of economic activity in the UK construction sector at 11:30 (GMT+3:00).

We also recommend paying attention to the speech by the Bank of England Governor Carney.

by JustForex, 2019.07.02

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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