The US Currency Continues to Grow. The Euro Is Declining

The US dollar strengthened against a basket of major currencies. The dollar index (#DX) closed yesterday's trading session in the positive zone (+0.11%). Investors have not particularly responded to the news about the possible US President D. Trump impeachment, as they believe that he can avoid the procedure. Financial market participants paid more attention to news about the progress in trade negotiations between the US and China.

Mixed economic data from the US was published yesterday. Thus, GDP (q/q) counted to 2.0% in the second quarter, as experts expected. Initial jobless claims increased by 213K, while experts expected 212K. At the same time, the pending home sales index grew by 1.6% instead of the forecasted growth by 0.9%.

The Euro continues to decline against the US currency, despite the optimistic data published this week. The comments by ECB chief economist, Lane, also did not cheer up investors. He said that the stimulus package announced this month was not sufficient and the regulator would not be able to reach the limits of the quantitative easing program for a long period of time.

The “black gold” prices are consolidating. Currently, futures for the WTI crude oil are testing the $56.75 mark per barrel.

Market Indicators

Yesterday, the bearish sentiment was observed in the US stock markets: #SPY (-0.21%), #DIA (-0.26%), #QQQ (-0.37%).

The 10-year US government bonds yield is at 1.70-1.71%.

The Economic News Feed for 27.09.2019:
  • - Core durable goods orders in the US at 15:30 (GMT+3:00).

by JustForex, 2019.09.27

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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