Currency Majors Show Ambiguous Results

The US currency shows a variety of trends against its main competitors. The dollar index (#DX) closed yesterday's trading session with a slight decline (-0.07%). Investors assess the US president's controversial comments on the new stimulus package. On Tuesday, Trump announced the end of talks with Congress on a new stimulus package before the US presidential election on November 3. However, US President Donald Trump soon tweeted that he was ready to agree to certain measures, including support for individuals, small businesses and airlines.

According to the FOMC minutes, the Fed plans to keep interest rates at current levels for a long time. Today, investors are focused on the initial jobless claims. Traders are also closely following the dynamics of the US-China relationship after it became known that Washington is considering imposing restrictions on Chinese companies Ant Group and Tencent Holdings Ltd. due to suspicions that the payment platforms of these companies could pose a threat to US national security.

As ECB President Christine Lagarde has promised, the European Central Bank (ECB) will not abandon stimulus measures until the crisis caused by the COVID-19 pandemic is over. Experts expect that the regulator will increase the volume of the Pandemic Emergency Purchase Programme by the end of the year, which is currently 1.35 trillion euros. Meanwhile, the head of the Bundesbank Jens Weidmann, who opposes the ultra-soft monetary policy, believes that the Eurozone economy is recovering "somewhat faster than expected."

The "black gold" prices are growing. At the moment, futures for the WTI crude oil are testing the $40.40 mark per barrel.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+1.74%), #DIA (+1.87%), #QQQ (+1.73%).

The 10-year US government bonds yield is consolidating. The indicator has reached 0.76-0.77%.

The news feed for 2020.10.08:
  • - ECB monetary policy statement at 14:30 (GMT+3:00);
  • - Initial jobless claims in the US at 15:30 (GMT+3:00).

by Justforex, 2020.10.08

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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