The US Dollar Is Declining. Spread of the COVID-19 Virus Is Still in the Spotlight

The US dollar continues to lose ground against a basket of major currencies. The dollar index (#DX) closed in the red zone (-0.59%). The US currency is still under pressure amid the prospects for a further reduction in the Fed interest rates. Quite weak economic data from the US were also published yesterday. So, initial jobless claims counted to 216K, while experts forecasted 215K. At the moment, financial market participants have taken a wait-and-see attitude before the publication of the US labor market report for February.

The British pound has updated local highs again. Comments by the Governor of Bank of England supported the pound. The official believes that more clarity is needed regarding the COVID-19 virus before rushing into an emergency rate cut. Meanwhile, it is reported that coronavirus is spreading throughout the United States. At least 57 new cases of coronavirus were confirmed nationwide on Thursday when the virus was first detected in Colorado, Maryland, Tennessee and Texas, as well as in San Francisco.

The "black gold" prices have updated the lows again. At the moment, futures for the WTI crude oil are testing the $44.10 mark per barrel.

Market indicators

Yesterday, there were aggressive sales in the US stock market: #SPY (-3.32%), #DIA (-3.48%), #QQQ (-3.04%).

The 10-year US government bonds yield fell sharply again. At the moment, the indicator is at the level of 0.77-0.78%.

The news feed on 2020.03.06:
  • - Report on the US labor market at 15:30 (GMT+2:00);
  • - Data on the labor market of Canada at 15:30 (GMT+2:00).

We also recommend paying attention to the speeches by FOMC representatives.

by JustForex, 2020.03.06

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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