The Greenback Demand Is Still High

The US currency continues to strengthen against its main competitors. Yesterday, the dollar index (#DX) has updated its local highs again and closed in the green zone (+0.61%). The demand for risky assets is still low amid the coronavirus pandemic. The greenback was supported by an optimistic report on US GDP. According to preliminary data, in the third quarter, the country's economic growth accelerated sharply and counted to 33.1%. At the moment, currency majors have become stable. Investors expect additional drivers.

The ECB, as expected, kept the key marks of the monetary policy at the same level. The regulator also signaled the introduction of additional financial stimulus by the end of the year to combat the impact of COVID-19. A further decline in the single currency is possible. Today, financial market participants will assess economic releases from Germany, the Eurozone and the US.

Oil quotes have become stable after a prolonged drop. At the moment, futures for the WTI crude oil are testing the $36.30 mark per barrel. At 19:00 (GMT+2:00), US Baker Hughes oil rig count will be published.

Market indicators

Major US stock indices have recovered part of their losses after a sharp decline since the beginning of this week: #SPY (+1.02%), #DIA (+0.42%), #QQQ (+1.75%).

The 10-year US government bonds yield has been growing again. At the moment, the indicator is at the level of 0.82-0.84%.

The news feed for 2020.10.30:
  • - Data on the GDP of Germany at 11:00 (GMT+2:00);
  • - Eurozone consumer price index at 12:00 (GMT+2:00);
  • - Eurozone GDP report at 12:00 (GMT+2:00);
  • - Personal spending in the US at 14:30 (GMT+2:00).

by Justforex, 2020.10.30

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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