The US-China Сonflict Is in the Spotlight Again

The US currency has strengthened again relative to the basket of major currencies. The US dollar index (#DX) has updated local highs and closed in the positive zone (+0.47%). US President Donald Trump accuses China of negligence, which led to an outbreak of coronavirus worldwide. In this regard, the President has threatened to break last year’s trade agreement with China if it doesn't purchase American goods in the promised volumes. China, in turn, denies all accusations. Investors are concerned about another trade war between the countries, which has led to an increase in demand for the US dollar.

Today, the US-UK video talks on a post-Brexit trade agreement will begin. The first round of talks will last about two weeks and will cover the topic of trade in goods, digital services, as well as investment and support for small businesses. In the UK, supporters of Prime Minister Boris Johnson consider the free trade agreement with the United States one of the most significant advantages of a country's exit from the EU.

The "black gold" prices are rising amid hopes for a recovery in demand when the restrictions imposed due to coronavirus are lifted. At the moment, futures for the WTI crude oil are testing the $22.50 mark per barrel. At 23:30 (GMT+3:00), API weekly crude oil stock will be published.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+0.28%), #DIA (+0.06%), #QQQ (+1.17%).

The 10-year US government bonds yield has been growing. At the moment, the indicator is at the level of 0.65-0.66%.

The news feed on 2020.05.05:
  • - Data on economic activity in the UK at 11:30 (GMT+3:00);
  • - ISM non-manufacturing PMI at 17:00 (GMT+3:00).

by JustForex, 2020.05.05

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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