The US Dollar Is Consolidating

The US dollar is consolidating against a basket of currency majors. The US dollar index (#DX) closed yesterday's trades with a slight increase (+0.05%). Investors have taken a wait-and-see attitude before Fed Chairman Jerome Powell's monetary policy speech on Thursday at a virtual conference in Jackson Hole. The US currency is supported by the fact that both the US and China are committed to their trade deal and intend to take all necessary measures to achieve success in the agreement. Both sides see progress in the implementation of the first phase of the trade agreement between the countries.

Meanwhile, according to WHO, the COVID-19 pandemic is still spreading, but the increase in cases and deaths from coronavirus is declining worldwide, except Southeast Asia and the eastern Mediterranean. The number of cases of COVID-19 has exceeded 23.65 million, 811,895 people have died.

The "black gold" prices are growing. At the moment, futures for the WTI crude oil are testing the $42.80 mark per barrel. At 23:30 (GMT+3:00), API weekly crude stock will be published.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+1.01%), #DIA (+1.39%), #QQQ (+0.62%).

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

The news feed for 2020.08.25:
  • - German GDP at 09:00 (GMT+3:00);
  • - German IFO business climate index at 11:00 (GMT+3:00);
  • - CB consumer confidence index in the US at 17:00 (GMT+3:00);
  • - New home sales in the US at 17:00 (GMT+3:00).

by JustForex, 2020.08.25

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.

Open Account

Get Free Analytics

* required fields