Currency Majors Have Become Stable. Investors Expect Additional Drivers

The US dollar weakened slightly against a basket of currency majors despite optimistic economic data. The dollar index (#DX) closed yesterday's trading session in the red zone (-0.21%). Thus, the producer price index in the US rose by 0.4% in October instead of forecasted growth by 0.3%. Also, Fed Chairman Jerome Powell noted that the US economy was stable and the official did not see the risk of recession. Currency majors are currently consolidating.

The US currency is under pressure due to contradictions concerning China-US relations. Chinese Ministry of Commerce spokesman, Gao Feng, said that in order to reach a phase one agreement, the United States would have to cancel the tariffs previously introduced. “The trade war was begun with adding tariffs, and should be ended by canceling these additional tariffs. This is an important condition for both sides to reach an agreement,” Gao said. However, as you know, the United States is in no hurry to take such a step. At the same time, White House economic adviser, Larry Kudlow, said the parties were approaching a deal.

The "black gold" prices have been declining. At the moment, futures for the WTI crude oil are testing the $56.50 mark per barrel. At 20:00 (GMT+2:00), US Baker Hughes total rig count will be published.

Market Indicators

Yesterday, there was a variety of trends in the US stock markets: #SPY (+0.15%), #DIA (+0.06%), #QQQ (-0.08%).

The 10-year US government bonds yield has not changed. At the moment, the indicator is at the level of 1.84-1.85%.

The Economic News Feed for 15.11.2019:
  • - Consumer price index in the Eurozone at 12:00 (GMT+2:00);
  • - Report on retail sales in the US at 15:30 (GMT+2:00);
  • - Industrial production in the US at 16:15 (GMT+2:00).

by JustForex, 2019.11.15

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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