The Single Currency Has Fallen due to Accusations of the German Federal Court of Justice

The US dollar continues to grow against a basket of major currencies. The US dollar index (#DX) has updated local highs and closed in the positive zone (+0.20%). US Deputy National Security Advisor Matthew Pottinger has tried to ease the tension between the US and China. The official says that the United States is not going to apply "punitive measures" against China in the context of combat with the epidemic, taking a more peaceful position.

The single currency is under pressure after the German Federal Court of Justice accused the ECB of having exceeded its authority by launching a quantitative easing program in 2015. Now the ECB should prove the validity of the bond-buying program. Otherwise, the Bundesbank will stop participating in a program to rebuild economies that have suffered from the coronavirus pandemic.

Today, during the Asian trading session, optimistic economic data from New Zealand and Australia have been published. Thus, the level of employment in the 1st quarter (q/q) increased by 0.7%, while experts expected a decline by 0.3%. Australia's retail sales rose by 8.5% instead of a forecasted growth by 8.2%.

The "black gold" prices continue to recover. Currently, futures for the WTI crude oil are testing the $25.40 mark per barrel. At 17:30 (GMT+3:00), US crude oil inventories will be published.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+0.92%), #DIA (+0.58%), #QQQ (+1.13%).

The 10-year US government bonds yield has grown again. At the moment, the indicator is at the level of 0.67-0.68%.

The news feed on 2020.05.06:
  • - UK construction PMI at 11:30 (GMT+3:00);
  • - ADP nonfarm employment change at 15:15 (GMT+3:00).

by JustForex, 2020.05.06

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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