The US Currency Is Under Pressure

During yesterday's trading, investors' sentiment about the US currency improved slightly when South Korean officials said that North Korea was ready to give up on nuclear weapons if the regime was observed, and the US President Donald Trump pointed at the progress regarding the possible negotiations with North Korea. However, the US dollar is under pressure due to the possible introduction of duties on imports of aluminum and steel in the US. The US dollar index (#DX) closed in the negative zone (-0.53%).

Euro also remains under pressure after the announcement of the results of the parliamentary elections in Italy. Due to the fact that none of the parties won the majority of seats in the parliament, the country may sink into a long period of political instability, which may affect the economy of the Eurozone.

Investors fixed the positions before the meeting of the Bank of Canada on Monetary Policy, which will be held today at 17:00 (GMT+2). It is expected that the regulator will leave interest rates unchanged. We recommend you to pay attention to the rhetoric and comments of the Central Bank representatives.

The "black gold" prices are decreasing against the growth in weekly stocks and extraction of raw materials in the US. Futures for the WTI crude oil are testing $62.10 per barrel. At 17:30 (GMT+2:00), a report on the crude oil inventories in the US will be published.

Market Indicators

Yesterday, bullish sentiment prevailed in the US stock market: #SPY (+0.25%), #DIA (+0.00%), #QQQ (+0.42%).

At the moment, the 10-year US government bonds yield is at the level of 2.85-2.86%.

The news feed on 2018.03.07:

- The GDP data in the Eurozone at 12:00 (GMT+2:00);
- Report on the annual budget of the UK at 14:30 (GMT+2:00);
- Preliminary statistics on the labor market in the US from ADP at 15:15 (GMT+2:00);
- Trade balance in Canada at 15:30 (GMT+2:00);
- Bank of Canada meeting on monetary policy at 17:00 (GMT+2:00);
- "Beige Book" of the Fed at 21:00 (GMT+2:00).

by JustForex, 2018.03.07

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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