Demand for the Greenback Is Still High

The US dollar continues to grow against a basket of major currencies. Yesterday, the dollar index (#DX) closed in the green zone (+0.33%). Suddenly, China unexpectedly announced that it would halve duties on certain types of US imports. Investors hope that the global economy will be able to avoid the serious shock of an outbreak of coronavirus. According to data from China, the fee reduction will take effect on February 14th. The country is counting on cooperation with the United States in order to level all tariff increases in the future. Positive economic releases supported US currency. According to ADP, the number of people employed in the nonfarm sector of the country grew by 291K in January compared with market expectations of 156K. ISM non-manufacturing PMI accelerated from 54.9 to 55.5.

Yesterday, the US Senate acquitted President Donald Trump on both counts of impeachment. Now Trump can fully concentrate on the election race. Democrats, in turn, are not happy with the Senate decision. They called the Senate hearing fraud and cover-up.

According to recent data, the death toll from the virus has grown to 563 people, and the total number of infected has exceeded 28,000. The spread of the virus led to the isolation of entire Chinese cities, the closure of factories and interruptions in air traffic. US and Chinese doctors have set a goal to get a vaccine for testing in humans over the next few months, but many believe that this won't happen so soon.

The "black gold" prices continue to rise. Currently, futures for the WTI crude oil are testing the $51.35 mark per barrel.

Market Indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+1.15%), #DIA (+1.67%), #QQQ (+0.33%).

The 10-year US government bonds yield rose again. At the moment, the indicator is at the level of 1.65-1.66%.

The Economic News Feed for 06.02.2020:
  • - Initial jobless claims in the US at 15:30 (GMT+2:00).

by JustForex, 2020.02.06

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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