The US Dollar Is in the Positive Zone Amid a Probable Resolution of the Trade Conflict Between the US and China

On Friday, the US dollar strengthened against a basket of currency majors. The dollar index (#DX) closed in the positive zone (+0.28%) on Friday. The potential for further growth is still high. US President D. Trump said that Beijing and Washington were close to concluding a phase one trade agreement. Donald Trump expects to move to the second stage of negotiations quickly after the completion of the "first phase." In the second stage, the President wants to focus the US on the fact that China is stealing American intellectual property. However, Chinese officials are in no hurry to move on to the second stage before the U.S. presidential election in 2020. They prefer to wait a while and see if D. Trump remains for a second term.

The British pound weakened against the US currency. Weak economic statistics from the UK were published. The index of economic activity in the manufacturing sector counted to 48.3 instead of 48.8. Services PMI counted to 48.6 instead of 50.1. The slowdown in the UK economy in November strengthened due to uncertainty concerning Brexit.

The "black gold" prices fell slightly after growth the day before. At the moment, futures for the WTI crude oil are testing the $57.75 mark per barrel.

Market Indicators

On Friday, there was the bullish sentiment in the US stock market: #SPY (+0.22%), #DIA (+0.41%), #QQQ (+0.06%).

The 10-year US government bonds yield rose slightly. At the moment, the indicator is at the level of 1.77-1.78%.

The Economic News Feed for 25.11.2019:
  • - German IFO business climate index at 11:00 (GMT+2:00).

by JustForex, 2019.11.25

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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