The US Dollar Is in the Positive Zone. Investors Expect Labor Market Data

The US dollar strengthened against a basket of major currencies. The dollar index (#DX) closed in the green zone (+0.20%). Optimistic economic releases supported the greenback. Today, investors are focused on the US labor market report for January. Experts expect improvements in key indicators. We recommend paying attention to the difference between the actual and forecasted values.

Chinese President Xi Jinping assured US President Donald Trump that China was doing everything possible to contain the coronavirus, which has already killed more than 600 people. China is gradually achieving results and is confident that it will be able to defeat the epidemic. China's central bank will increase economic support to mitigate the effects of coronavirus. However, activity is likely to be recovered after the virus can be controlled. Japanese company Toyota announced a temporary suspension of production in factories in China due to coronavirus.

The "black gold" prices have been declining again. Currently, futures for the WTI crude oil are testing the $50.75 mark per barrel.

Market Indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+0.34%), #DIA (+0.30%), #QQQ (+0.86%).

The 10-year US government bonds yield has declined. At the moment, the indicator is at the level of 1.60-1.61%.

The Economic News Feed for 07.02.2020:
  • - Change in the number of people employed in the nonfarm sector in the US at 15:30 (GMT+2:00);
  • - US unemployment rate at 15:30 (GMT+2:00);
  • - Data on the labor market of Canada at 15:30 (GMT+2:00);
  • - Ivey PMI in Canada at 17:00 (GMT+2:00).

by JustForex, 2020.02.07

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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