The US Dollar Is Declining due to Uncertainty in China-US Trade Relations

The US dollar is declining against a basket of major currencies during yesterday's trading. The dollar index (#DX) closed yesterday in the red zone (-0.24%). The demand for “safe haven” currencies has grown due to the unclear situation concerning China-US trade relations. Financial market participants expect at least some news regarding the trade agreement between Beijing and Washington as on December 15 new tariffs on Chinese goods should come into force.

Yesterday, a positive report on the initial jobless claims was published in the US. So, the number of applications decreased to 203K, while experts expected 215K. Currently, financial market participants expect reports on the US labor market, which will be published today.

The British pound strengthened against the US dollar. Financial market participants expect elections in the UK Parliament on the Brexit issue to be held on December 12.

The "black gold" prices are consolidating. Currently, futures for the WTI crude oil are testing the $58.55 mark per barrel.

Market Indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+0.18%), #DIA (+0.11%), #QQQ (+0.20%).

The 10-year US government bonds yield is consolidating. At the moment, the indicator is at the level of 1.78-1.79%.

The Economic News Feed for 06.12.2019:
  • - Data on the US labor market at 15:30 (GMT+2:00);
  • - Data on the labor market in Canada at 15:30 (GMT+2:00).

by JustForex, 2019.12.06

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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