The Euro Has Updated Two-Month Lows

The US dollar is strengthening against a basket of major currencies despite weak economic data. So, existing home sales counted to only 5.27M in July instead of the forecasted value of 5.35M. The US dollar index (#DX) closed in the positive zone (+0.49%). Euro's decline supports the US currency. Thus, the euro has reached two-month lows before the ECB meeting. Financial market participants expect the ECB to give signals for lowering interest rates at tomorrow's meeting.

UK Prime Minister, Theresa May, is resigning today due to the victory of Boris Johnson in the election of the Conservative Party leader. Thus, from today, Johnson will become the 77th Prime Minister of the UK. It should be recalled that the official is a supporter of the "hard" Brexit and most likely wants the UK to exit the EU before October 31. At the same time, some members of the Conservative Party are ready to oppose Johnson and his Brexit position. It is not yet known whether the official will be able to enlist the support of the majority in the House of Commons and avoid no-deal Brexit. Otherwise, his opponents will act against him.

The "black gold" prices show positive dynamics. At the moment, futures for the WTI crude oil are testing the mark of $57.10 per barrel. At 17:30 (GMT+3:00) weekly crude oil inventories will be published in the US.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock markets: #SPY (+0.72%), #DIA (+0.63%), #QQQ (+0.65%).

The 10-year US government bonds yield is at 2.05-2.06%.

The news feed for 2019.07.24:

- A number of indicators on economic activity in Germany and the Eurozone at 10:30 (GMT+3:00) and 11:00 (GMT+3:00), respectively;
- New home sales in the US at 17:30 (GMT+3:00).

We also recommend paying attention to the speech by the UK Prime Minister Theresa May.

by JustForex, 2019.07.24

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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