The Dollar Index Has Updated Local Highs. Escalation of the Trade Conflict Continues

The US dollar has strengthened against a basket of major currencies during Friday trading despite mixed economic data. So, the index of consumer expectations and sentiments from the University of Michigan was published. The index of expectations in August was 79.9 and turned out to be worse than the forecasted value of 82.3; the index of sentiments was 89.8 instead of 92.1. At the same time, the index of business activity in Chicago was published as well, which amounted to 50.4 in August and was better than the expected value of 48.1. The US dollar index (#DX) closed in the positive zone (+0.41%).

US President Donald Trump again criticized the actions of the Fed. He accused the regulator of inaction while the euro is falling against the US currency, which gives European countries an advantage. "The Euro is dropping against the Dollar "like crazy", giving them a big export and manufacturing advantage...and the Fed does NOTHING!" Trump wrote on Twitter.

Relations between the US and China have again escalated. US duties on Chinese goods entered into force yesterday. Washington imposed 15% tariffs on Chinese goods worth more than $ 125 billion, including clothes, shoes, smartwatches, TVs, etc. China, in response, began to charge additional tariffs on a number of US goods worth $ 75 billion.

Today, during the Asian session Caixin Manufacturing PMI has been published. The indicator was 50.4 in August and turned out to be better than the forecasted value of 49.8.

The "black gold" prices are moving in different directions. Currently, the WTI crude oil futures are testing the $ 54.85 per barrel mark.

Market indicators

On Friday, the US stock markets showed a variety of trends: #SPY (-0.04%), #DIA (+ 0.09%), #QQQ (-0.24%).

The yield on 10-year US government bonds fell again. At the moment, the indicator is at the level of 1.49-1.50%.

The news feed on 2019.09.02:

- German Manufacturing PMI at 10:55 (GMT+3:00);
- Manufacturing PMI of the UK at 11:30 (GMT+3:00).

by JustForex, 2019.09.02

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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