The US Dollar Moves in Different Directions Against Majors

The US currency moves in different directions against the basket of majors. The US dollar index closed in the red zone (-0.16%). Quite optimistic data on the US economy were published yesterday. Thus, the CB consumer confidence index counted to 98.1 and turned out to be better than the forecasted value of 91.8.

Yesterday, Secretary of the Treasury Steven Mnuchin and Fed Chairman Jerome Powell spoke at the United States House Committee on Financial Services and announced their intention to take even more steps to save the US economy, as the damage caused by COVID-19 only increases.

British Prime Minister Boris Johnson also gave a speech yesterday and spoke about how the government was going to change the country for the better after the crisis caused by the coronavirus. The official said that he considered it improper to respond to the crisis with austerity. Johnson also did not rule out tax increases for the implementation of the country's recovery plan after the crisis. He noted that he wanted the tax burden to be as reasonable as possible. Funds from taxes will be needed to create jobs, as well as expenses necessary for schools, hospitals, modernization of infrastructure and acceleration of economic growth after a pandemic. Moreover, according to the Bank of England, the British economy may decline by 20% in the first half of 2020. A potential recession could be the worst in 300 years. Today, the FOMC meeting minutes will be in the spotlight, which may have a significant impact on the dynamics of currency majors.

The bullish sentiment prevails in the "black gold" market. Futures for the WTI crude oil are currently testing the $40.00 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 (+1.28%), #DIA (+0.77%), #QQQ (+1.96%).

The 10-year US government bonds yield is consolidating. At the moment, the indicator is at the level of 0.68-0.69%.

The news feed on 2020.07.01:
  • - German labor market data at 10:55 (GMT+3:00);
  • - A number of indicators on economic activity in Germany and the Eurozone at 10:55 (GMT+3:00) and 11:00 (GMT+3:00), respectively;
  • - Manufacturing PMI in the UK at 11:30 (GMT+3:00);
  • - ADP nonfarm employment change (June) at 15:30 (GMT+3:00);
  • - ISM Manufacturing PMI at 17:00 (GMT+3:00);
  • - FOMC meeting minutes at 21:00 (GMT+3:00).

by JustForex, 2020.07.01

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.

Open Account

Get Free Analytics

* required fields