The US Dollar Continues to Decline. FOMC Meeting Minutes Are in the Spotlight

The US currency has continued to decline. The US dollar index (#DX) closed again in the negative zone (-0.32%). Investor sentiment has worsened after comments by Fed Chairman, Jerome Powell, which were rather pessimistic. According to the official, additional assistance from the state will be required to restore the economy, and unemployment will affect the economy for many years to come.

Also, the effectiveness of the Moderna COVID-19 vaccine has been called into question. The STAT medical news website released a report according to which Moderna provided insufficient data to determine the effectiveness of the vaccine.

The demand for a single currency is supported by optimism about the French-German initiative to restore the European economy after the crisis caused by COVID-19. It should be recalled that countries want to create a €500bn fund. Today, investors will assess the FOMC meeting minutes, which may have a significant impact on the dynamics of currency majors.

The “black gold” prices are rising. Currently, futures for the WTI crude oil are testing the $32.10 mark per barrel. The US crude oil inventories will be published at 17:30.

Market indicators

Yesterday, there was the bearish sentiment in the US stock market: #SPY (-1.03%), #DIA (-1.51%), #QQQ (-0.25%).

The 10-year US government bonds yield has declined. At the moment, the indicator is at the level of 0.69-0.70%.

The news feed on 2020.05.20:
  • - UK consumer price index at 09:00 (GMT+3:00);
    - Eurozone consumer price index at 12:00 (GMT+3:00);
    - Data on inflation in Canada at 15:30 (GMT+3:00);
    - FOMC meeting minutes at 21:00 (GMT+3:00).

by JustForex, 2020.05.20

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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