Demand for the US Dollar Is Still High

During yesterday's trading session, the US dollar strengthened against a basket of currency majors. Growing prospects for a settlement of the trade conflict between Washington and Beijing support the greenback. According to media sources, the parties are considering the possibility of mutual concessions in order to sign the first stage of the agreement in November. Positive economic data put additional support to the US currency. Thus, ISM non-manufacturing PMI counted to 54.7 in October and was better than the expected value of 53.5. The dollar index (#DX) closed trading session in the green zone (+0.45%).

The British pound is consolidating in relation to its main competitors. Investors took a wait-and-see attitude before the Bank of England meeting, which will be held tomorrow. In general, it is expected that the interest rate will remain unchanged at 0.75%. However, the uncertainty concerning Brexit has caused severe damage to business, and weak economic releases mean that the next time Bank of England may cut interest rates.

The "black gold" prices have been declining after growth the day before. Currently, futures for the WTI crude oil are testing the $57.10 mark per barrel. At 17:30 (GMT+2:00), US crude oil inventories will be published.

Market Indicators

Yesterday, there was a variety of trends in the US stock markets: #SPY (-0.11%), #DIA (+0.09%), #QQQ (+0.05%).

The 10-year US government bonds yield has risen again. At the moment, the indicator is at the level of 1.84-1.85%.

The Economic News Feed for 06.11.2019:
  • - Ivey PMI in Canada at 17:00 (GMT+2:00).

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

by JustForex, 2019.11.06

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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