The US Dollar Is Declining Against Currency Majors

The US dollar has been declining again relative to a basket of currency majors. The US dollar index (#DX) closed in the red zone (-0.13%). At the same time, the single currency has been growing amid assumptions that the recovery in the US is behind Europe. Yesterday, White House officials and Congressional Democrats promised to work “around the clock” until they reach a deal on new measures to help the economy. While officials try to resolve differences and take new measures, experts expect new stimulus from the Federal Reserve, which also contributes to the decline in the US dollar. The pressure is rising as the Senate goes on vacation on Friday.

Data on the US labor market from ADP will be published today. Nonfarm employment change is expected to decline as the second wave of coronavirus has caused various states to postpone their plans to reopen businesses.

The "black gold" prices are growing. At the moment, futures for the WTI crude oil are testing the $42.35 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 (+ 0.39%), #DIA (+0.63%), #QQQ (+0.37%).

The 10-year US government bonds yield has declined. At the moment, the indicator is at the level of 0.51-0.52%.

The news feed for 2020.08.05:
  • - Composite PMI (July) in the UK at 11:30 (GMT+3:00);
  • - Services PMI in the UK at 11:30 (GMT+3:00);
  • - Data on the US labor market from ADP at 15:15 (GMT+3:00);
  • - ISM non-manufacturing PMI at 17:00 (GMT+3:00).

by JustForex, 2020.08.05

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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