The Dollar Index Has Recovered Part of Losses. Sterling Has Collapsed

The US dollar has been growing against a basket of major currencies. Yesterday, the dollar index (#DX) closed in the green zone (+0.49%). Positive economic data from the US supported the American currency. So, ISM manufacturing PMI counted to 50.9 and was better than the forecasted value of 48.5.

The situation with coronavirus is still unresolved. The death toll from coronavirus in China rose to 425 as of Monday evening, and the number of infected exceeded 20,000. China continues to expand protective measures: in addition to Wuhan, Huanggang and Ezhou have already been closed. Perhaps quarantine will be introduced in other cities as needed.

Sterling was under pressure after comments by Boris Johnson. The Prime Minister said that Great Britain did not intend to adhere to EU trade standards after Brexit. Today, the Reserve Bank of Australia has decided on the interest rate during the Asian trading session. So, the regulator left the indicator unchanged at 0.75%. The central bank also kept forecasts of economic growth at current levels.

The "black gold" prices are recovering after a protracted fall. Currently, futures for the WTI crude oil are testing the $50.85 mark per barrel.

Market Indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+0.74%), #DIA (+0.55%), #QQQ (+1.51%).

The 10-year US government bonds yield has been growing. At the moment, the indicator is at the level of 1.57-1.58%.

The Economic News Feed for 04.02.2020:
  • - Construction PMI in the UK at 11:30 (GMT+2:00);
  • - Factory orders in the US at 17:00 (GMT+2:00);
  • - New Zealand labor market report at 23:45 (GMT+2:00).

by JustForex, 2020.02.04

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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