Trump Hinted at the Resumption of a Trade War Between the US and China

The greenback has been growing against a basket of major currencies. The US dollar index (#DX) has updated local highs. In general, the trading activity was low, as most countries celebrated International Labor Day. This week, investors expect the publication of a report on the US labor market for April. US President Donald Trump threatens China with new tariffs and a trade war again. Trump is confident that China is directly involved in the origin and spread of coronavirus.

European countries are gradually recovering economic activity: factories and construction sites in Italy open on Monday. Schools, museums and churches in Germany are also opening. The UK is currently developing a quarantine exit strategy. EU governments are concerned about the second wave of COVID-19, but since the European Central Bank forecasts a 15% drop in the Eurozone economy this quarter, resuming economic activity is a must. About half of the US states partially resumed their economic activity over the weekend.

The "black gold" prices are falling again. At the moment, futures for the WTI crude oil are testing the $18.25 mark per barrel.

Market indicators

On Friday, there was the bearish sentiment in the US stock market: #SPY (-2.65%), #DIA (-2.44%), #QQQ (-2.82%).

The 10-year US government bonds yield is consolidating. At the moment, the indicator is at the level of 0.59-0.60%.

The news feed on 2020.05.04:
  • - German manufacturing PMI at 10:55 (GMT+3:00).

by JustForex, 2020.05.04

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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