The Dollar Index Closed in the Red Zone. Downward Potential Is Still High

During yesterday's trading, the US dollar weakened against currency majors. The dollar index (#DX) moved away from local highs and closed the trading session in the red zone (-0.25%). The greenback was under pressure after weak economic releases. In September, manufacturing PMI in the US fell at the fastest pace in 10 years. Most financial market participants believe that the Fed will continue the cycle of lowering interest rates.

The Aussie reached multi-year lows after the Reserve Bank of Australia cut its key interest rate by 25 basis points to 0.75%. The British pound is still under pressure due to the uncertainty concerning Brexit. Boris Johnson plans to submit to the EU his proposals before the end of the week. In particular, alternative regulation of the backstop issue. We recommend following current information on this issue.

The "black gold" prices have been recovering after a significant drop since the beginning of this week. Currently, futures for the WTI crude oil are testing the $54.05 mark per barrel.

Market Indicators

Yesterday, there were sales in the US stock markets: #SPY (-1.19%), #DIA (-1.37%), #QQQ (-0.82%).

The 10-year US government bonds yield has been declining again. At the moment, the indicator is at the level of 1.63-1.64%.

The Economic News Feed for 02.10.2019:
  • - Construction PMI in the UK at 11:30 (GMT+3:00);
  • - ADP nonfarm employment change at 15:15 (GMT+3:00).

We also recommend paying attention to the speeches by the FOMC representatives.

by JustForex, 2019.10.02

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.

Open Account

Get Free Analytics

* required fields