The US Dollar Is Declining Amid Political News

During yesterday's trading, the US dollar weakened against a basket of major currencies. Yesterday, the dollar index (#DX) closed the trading session in the negative zone (-0.30%). The US currency was under pressure due to weak economic data. Thus, the CB consumer confidence index counted to 125.1 in September, which turned out to be worse than the forecasted value of 134.1.

The US dollar is also under pressure because Democrats from the US Congress intend to start an investigation into the impeachment of US President Donald Trump. Speaker of the United States House of Representatives, Nancy Pelosi, announced. Six committees of the House of Representatives will conduct an investigation to determine the article under which the impeachment procedure may be conducted. The main accusation is that D. Trump is trying to discredit his opponent Joe Biden on the eve of the 2020 election.

The British pound is strengthening amid news that the Supreme Court of the United Kingdom considered the suspension of parliament to be illegal. British Prime Minister, Boris Johnson, stopped parliament from September 9 to October 14, so parliament members had less time to make decisions on leaving the EU before Brexit, which is scheduled for October 31. Parliament will resume work today at 11:30 (GMT+1:00).

During the Asian trading session, the Reserve Bank of New Zealand has decided on a key interest rate. So, the regulator left the rate unchanged at 1.00%, as experts expected.

The "black gold" prices continue to decline. At the moment, futures for the WTI crude oil are testing the $56.50 mark per barrel. At 17:30, crude oil inventories will be published in the United States.

Market Indicators

Yesterday, the bearish sentiment was observed in the US stock markets: #SPY (-0.78%), #DIA (-0.52%), #QQQ (-1.33%).

The 10-year US government bonds yield has been declining. At the moment, the indicator is at the level of 1.64-1.65%.

The Economic News Feed for 25.09.2019:
  • - New home sales in the US at 17:00 (GMT+3:00).

by JustForex, 2019.09.25

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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