The US Dollar Is Declining Moderately. Investors Expect the FOMC Protocols

Yesterday, trading on currency majors was fairly calm. The dollar rate slightly decreased against the basket of major currencies. The US dollar index (#DX) closed in the negative zone (-0.23%). Financial market participants continue to assess the risks of a trade war. On Friday, the US should introduce duties of 25% on import of Chinese goods. China may introduce duties in return. Also, investors took a wait-and-see attitude before the publication of the FOMC protocols, which may indicate further pace of the key interest rate rise by the Fed.

The UK continues to publish optimistic data on economic activity in the country. Yesterday, the British pound strengthened after the publication of the index of economic activity in the services sector in June, which counted to 55.1 and was higher than the forecasted value of 53.9. This gives a reason to believe that the British economy has begun to recover and the likelihood that the Bank of England will raise the interest rate in August has increased.

The "black gold" prices are declining. At the moment, futures for the WTI crude oil are testing a mark of $73.80 per barrel. Investors expect a report on the US crude oil inventories at 18:00 (GMT+3:00).

Market Indicators

Yesterday, the US financial markets were closed due to the holiday.

At the moment, the 10-year US government bonds yield is at the level of 2.84-2.85%.

The news feed on 2018.07.05:

- The ADP nonfarm employment change in the US at 15:15 (GMT+3:00);
- The ISM non-manufacturing purchasing managers index in the US at 17:00 (GMT+3:00);
- Publication of the FOMC protocols at 21:00 (GMT+3:00).

by JustForex, 2018.07.05

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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