The US Dollar Strengthened Before the Summit in Jackson Hole

Yesterday, the US dollar went in price against other major currencies. The dollar index (#DX) closed the trading session in the positive zone (+0.44%). The US currency is supported by an increase in the US government bonds yield. The euro was under pressure due to weak ZEW economic sentiment indexes in Germany and the Eurozone. The GBP/USD currency pair overcame and consolidated below the key support of 1.28500. There is no new information about the conflict on the Korean Peninsula. The demand for safe currencies has weakened.

At the moment, investors have adopted a wait-and-see attitude. Tomorrow the conference in Jackson Hole will begin. The Fed Chairman Janet Yellen and the ECB President Mario Draghi will present reports on monetary policy.

The prices for "black gold" are stable. The futures for the WTI crude oil are traded in the range of $47.50 – $48.00 per barrel.

Market Indicators

Yesterday the bullish sentiment prevailed on the US stock market. The main indices closed in the positive zone: #SPY (+1.05%), #DIA (0.90%), #QQQ (+1.52%).

At the moment, the 10-year US government bonds yield is at the level of 2.21-2.22%.

Today we recommend you to pay attention to the following economic reports:

  • – Indices of business activity in Germany and the Eurozone at 10:30 (GMT+3:00) and 11:00 (GMT+3:00), respectively;
  • – Statistics on the real estate market in the US at 17:00 (GMT+3:00);
  • – Crude Oil Inventories in the US at 17:30 (GMT+3:00).

by JustForex, 2017.08.23

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.