The Demand for Risky Assets Has Weakened Again

The US currency is growing against the basket of majors. The US dollar index closed in the green zone (+0.27%). Yesterday, ambiguous data on the US economy was published. So, core durable goods orders increased by 0.4%, while investors expected growth by 0.25%. However, the number of initial jobless claims has risen again and counted to 1.480K instead of 1.300K.

The growing number of COVID-19 infections has led investors to doubt in the V-shaped economic recovery that markets are waiting for. The IMF said yesterday that the coronavirus pandemic was causing more extensive and deeper damage to economic activity than initially thought. The demand for risky assets has weakened significantly.

The "black gold" prices are consolidating. Currently, futures for the WTI crude oil are testing the $38.75 mark per barrel. At 20:00 (GMT+3:00), U.S. Baker Hughes Total Rig Count will be published.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+1.07%), #DIA (+1.10%), #QQQ (+0.95%).

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

The news feed on 2020.06.26:
  • At 15:30 (GMT+3:00), data on personal spending will be published in the United States.

We also recommend paying attention to the speech by the head of the ECB.

by JustForex, 2020.06.26

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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