The US Dollar Strengthens Before the Speech of the Fed's Chairman

Yesterday, the US Department of Commerce published weak statistics. In May, basic orders for durable goods grew by 0.1%, which is less than the forecasted value at 0.5%. These events caused a sharp drop in the US dollar against major world currencies. At the same time, in the second half of the day, the US currency managed to recover most of the losses. At the moment, the demand for the US dollar is at a fairly high level. Investors expect that Janet Yellen will reaffirm her insights into the monetary and credit policy, which she offered at the last Fed's meeting.

The Statistics Service of New Zealand reported that in May the trade surplus narrowed to 103M in comparison with the previous value at the level of 536M.

The oil quotes continue to recover. With the opening of the trading session, futures for WTI crude oil rose by more than 0.80%.

Market Indicators

During yesterday's trading, US stock indices showed a variety of trends: #SPY (+0.07%), #DIA (+0.06%), #QQQ (-0.47%).

The 10-year US government bonds yield shows a downward trend. At the moment the indicator is at the level of 2.13%.

The dollar index (#DX) finished the trading session in the positive zone (+0.18%).

Today we advise you to pay attention to the following events:

  • - Speech of ECB and Bank of England Presidents at 11:00 (GMT+3:00) and 13:00 (GMT+3:00) respectively;
  • - The consumer confidence index in the US at 17:00 (GMT+3:00);
  • - The Fed's Chairman Yellen's speech at 20:00 (GMT+3:00).
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.