The Greenback Is Growing. Trading Activity Has Reduced due to Holidays

The US currency is rising again relative to a basket of currency majors. The US dollar index (#DX) closed in the positive zone (+0.49%) on Friday. The tension between the United States and China is in the spotlight after China announced its intention to consider the Hong Kong national security law. White House officials, in turn, said that the law could lead to US sanctions, which would further damage strained relations between countries.

The single currency is under pressure after the release of the last ECB meeting account, which was published on Friday. According to the protocol, the leadership of the Central Bank does not count on a quick recovery of the Eurozone economy after the crisis caused by the COVID-19 pandemic. Also, the regulator should be ready to adjust the bond and other instruments purchase program if the introduced incentive measures are not enough to restore the economy.

The "black gold" prices have become stable after a prolonged rally. Currently, WTI crude oil futures are testing the $33.45 mark per barrel.

Market indicators

On Friday, there was a variety of trends in the US stock market: #SPY (+0.19%), #DIA (-0.06%), #QQQ (-0.35%).

The 10-year US government bonds are consolidating. At the moment, the indicator is at the level of 0.65-0.66%.

The news feed on 2020.05.25:
  • - German GDP data at 09:00 (GMT+3:00);
    - German IFO business climate index at 11:00 (GMT+3:00).

UK financial markets will be closed due to Bank holidays, and US markets – due to Memorial Day.


by JustForex, 2020.05.25

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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