The Greenback Continues to Lose Ground Against Currency Majors. The Bank of Canada Meeting Is in the Spotlight

The US currency has continued to decline against a basket of currency majors. The dollar index (#DX) closed again in the negative zone (-0.16%). Prospects for new stimulus measures for global economies and global economic recovery have motivated traders to buy risky assets. Also, the US dollar is under pressure due to mass protests in the United States.

The British pound has updated local highs after it became known that the UK can be flexible in talks with the EU. The country is expected to make concessions on some critical issues in the Brexit talks if the EU agrees to mitigate regulatory requirements. The UK should also ask by July 1 to extend the current transition period, which ends in December. Today, financial market participants will be focused on the Bank of Canada meeting. It is expected that the regulator will keep the key marks of monetary policy at the same level.

The "black gold" prices continue to rise. Futures for the WTI crude oil are currently testing the $37.45 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 (+0.40%), #DIA (+0.39%), #QQQ (+0.30%).

The 10-year US government bonds yield is consolidating. At the moment, the indicator is at the level of 0.66-0.67%.

The news feed on 2020.06.03:
  • - German unemployment change at 10:55 (GMT+3:00);
  • - UK composite PMI at 11:30 (GMT+3:00);
  • - Services PMI in the UK at 11:30 (GMT+3:00);
  • - ISM non-manufacturing PMI at 17:00 (GMT+3:00);
  • - Bank of Canada interest rate decision at 17:00 (GMT+3:00).

by JustForex, 2020.06.03

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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