Greenback Demand Is Still High. Dollar Index Has Updated Local Highs

The US dollar continued to strengthen against a basket of major currencies. The dollar index (#DX) closed yesterday in a positive zone (+0.18%). Optimistic data from the US were published yesterday. So, Philadelphia Fed manufacturing index counted to 36.7 in February and turned out to be better than the forecasted value of 12.0, which indicates an improvement in the manufacturing sector.

The Japanese yen fell to lows in two and a half years due to the continued spread of the coronavirus epidemic, which caused capital outflow from Asia, while having increased demand for such safe assets as the US dollar, gold and government bonds. On Friday, China reported accelerated growth in the number of coronavirus infected. South Korea reported 52 new infections. In Japan, new deaths were recorded. This weekend, G20 Finance Ministers and Central Bank Governors will discuss the epidemic risks for the global economy at a meeting in Saudi Arabia.

The "black gold" prices have been declining amid the spread of coronavirus. At the moment, futures for the WTI crude oil are testing the $53.00 mark per barrel. At 20:00 (GMT+2:00), Baker Hughes rig count will be published.

Market indicators

Yesterday, there was the bearish sentiment in the US stock market: #SPY (-0.41%), #DIA (-0.45%), #QQQ (-0.93%).

The 10-year US government bonds yield is consolidating. At the moment, the indicator is at the level of 1.48-1.49%.

The Economic News Feed for 21.02.2020:
  • - German manufacturing PMI at 10:30 (GMT+2:00);
  • - UK manufacturing PMI at 11:30 (GMT+2:00);
  • - Consumer price index in the Eurozone at 12:00 (GMT+2:00);
  • - Statistics on retail sales in Canada at 15:30 (GMT+2:00);
  • - Existing home sales in the US at 17:00 (GMT+2:00).

by JustForex, 2020.02.21

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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