The US Dollar Has Been Declining

The US dollar has been declining against a basket of currency majors after the speech by the Fed Chairman. The US dollar index (#DX) has updated local lows. Jerome Powell said that during a symposium at Jackson Hole the Fed had approved a new monetary policy strategy allowing inflation in the country to run above the 2% target at certain times.

The tension between the US and China continue to escalate. Currently, China's military activity in the disputed South China Sea has become a stumbling block, with each side accusing the other of provocative behavior. Yesterday, a US warship conducted a routine operation in the South China Sea, which Beijing perceived as a threat to its sovereignty. Countries exchanged accusations. US Secretary of Defense Mark Esper pledged not to "cede an inch" in the Pacific, and China said the United States was risking the soldiers’ lives. Today, Japan's Prime Minister Shinzo Abe plans to announce his resignation for reasons of ill health. We recommend following up-to-date information on this issue.

The "black gold" prices are consolidating. At the moment, futures for the WTI crude oil are testing the $43.00 mark per barrel. At 20:00 (GMT+3:00), U.S. Baker Hughes Total Rig Count will be published.

Market indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (+0.22%), #DIA (+0.57%), #QQQ (-0.31%).

The 10-year US government bonds yield has started rising. At the moment, the indicator is at the level of 0.73-0.74%.

The news feed for 2020.08.28:
  • - Data on Canada's GDP at 15:30 (GMT+3:00).

by JustForex, 2020.08.28

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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