The US Currency Remains under Pressure

On Friday, the US dollar continued to lose ground relative to the majors. The Bureau of Economic Analysis of the USA published ambiguous statistics on GDP. In the second quarter, the country's economic growth justified market expectations and amounted to 2.6%. At the same time, the GDP growth in the first quarter was revised to 1.2% from the initial level of 1.4%. The probability of an increase in the key interest rate of the Fed in December this year fell to 42.5%. This week, investors will be focused on the report on the US labor market, which will have a significant impact on the dynamics of the US currency.

On Friday, the USD/CAD currency pair again approached a minimum for two years against the backdrop of positive data on Canada's GDP. According to the Statistics Canada, in May, the country's economy grew by 0.6%, which is more than the forecasted level of 0.2%.

Prices of "black gold" continue to show positive dynamics. At the moment, futures for the WTI crude oil are being traded near $50 per barrel.

Market Indicators

SPY (SPDR S&P 500 ETF) moved away from historical highs and closed at 246.91 USD (-0.12%).

The 10-year US government bonds yield recovered slightly after falling on Friday, July 28. At the moment the indicator is at the level of 2.29%.

The dollar index (#DX) closed in the negative zone (-0.65%).

Today we recommend you to pay attention to the following statistics:

  • – A report on inflation in the Eurozone at 12:00 (GMT+3:00);
  • – The index of pending sales in the US real estate market at 17:00 (GMT+3:00).

by JustForex, 2017.07.31

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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