The Dollar Index Is Declining. Demand for Euro Has Risen

The US dollar weakened against the basket of major currencies yesterday. The US currency is under pressure due to the political situation with Iran. After exiting the nuclear deal with Tehran, the US imposed a number of sanctions on Iran. Also, the US insists that European companies stop dollar transactions with Iranian companies before August 6. In turn, Iran will resume its activities in the nuclear sphere, if European countries withdraw from the deal. The US dollar index (#DX) closed in the negative zone (-0.28%).

The euro strengthened against the US dollar after comments by the ECB representative Peter Praet. As it became known, the Central Bank can announce details about the reduction of the quantitative easing program at the next meeting. It should be recalled that on June 14, the ECB will announce its decision on the key interest rate. In May, the Ivey purchasing managers index in Canada counted to 62.5 and was worse than the forecasted value of 69.7.

The "black gold" prices are moderately increasing after a decline the day before. At the moment, futures for the WTI crude oil are testing a mark of $65.00 per barrel.

Market Indicators

Yesterday, the bullish sentiment prevailed in the US stock market: #SPY (+0.84%), #DIA (+1.36%), #QQQ (+0.58%).

At the moment, the 10-year US government bonds yield is at the level of 2.97-2.98%.

The economic calendar on 2018.06.07:

Today, the news feed is fairly calm. We recommend paying attention to the GDP data of the Eurozone (12:00 GMT+3:00) and the speech of the Bank of Canada Governor Poloz.

by JustForex, 2018.06.07

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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