Investors Have Started Partially Fixing Positions on the Greenback

The greenback has become stable against its main competitors. Financial market participants have started partially fixing their positions on the US dollar after a prolonged decline. During yesterday's trading, the dollar index (#DX) updated local highs and closed in the green zone (+0.22%). Positive statistics from the US supported the American currency. In August, ISM manufacturing PMI accelerated from 54.2 to 56.0.

Australia's economy has entered a recession for the first time in 30 years. In the second quarter, the country's GDP declined by 7.0% (QoQ). Market expectations were at -6.0%. Investors expect the US labor market report for August, which will be published on Friday, September 04. Today, a number of important economic releases from the US will be published, which may significantly impact the further alignment of forces on currency majors. We also recommend paying attention to the speeches by the FOMC representatives.

The "black gold" prices are consolidating. At the moment, futures for the WTI crude oil are testing the $42.85 mark per barrel. At 17:30 (GMT+3:00), data on EIA crude oil inventories will be published.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+0.94%), #DIA (+0.88%), #QQQ (+1.71%).

The 10-year US government bonds yield has moved away from local lows. At the moment, the indicator is at the level of 0.69-0.70%.

The news feed for 2020.09.02:
  • - ADP nonfarm employment change at 15:15 (GMT+3:00);
  • - Fed's "Beige Book" at 21:00 (GMT+3:00).

by JustForex, 2020.09.02

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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