Greenback Demand Is Still High

The US dollar strengthened slightly against a basket of major currencies. Yesterday, the dollar index (#DX) closed in the red zone (+0.04%). At the same time, the demand for greenback is still high. Quite optimistic data on the US economy were published yesterday. Thus, the core consumer price index rose by 0.2% in January, which met the forecasts. Initial jobless claims fell to 205K instead of 210K. Experts believe that the economic impact of the Chinese coronavirus epidemic on the United States will be less significant than on European countries, as Europe has strong trade ties with Asian markets, in particular with China. The single currency has updated two-year lows against the US dollar.

The British pound has been growing. Investors were surprised by the news that the UK Chancellor of the Exchequer Sajid Javid resigned. The new UK Chancellor will be the Chief Secretary of the Treasury, Rishi Sunak.

The "black gold" prices are rising. Currently, futures for the WTI crude oil are testing the $52.10 mark per barrel.

Market Indicators

Yesterday, there was the bearish sentiment in the US stock market: #SPY (-0.11%), #DIA (-0.30%), #QQQ (-0.13%).

The 10-year US government bonds yield is consolidating. At the moment, the indicator is at the level of 1.59-1.60%.

The Economic News Feed for 14.02.2020:
  • - Eurozone GDP data at 12:00 (GMT+2:00);
  • - US retail sales statistics at 15:30 (GMT+2:00).

by JustForex, 2020.02.14

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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