The US Dollar is Under Pressure

Geopolitical risks between the US and North Korea continue to grow, which increases the demand for safe assets. During yesterday's trading, the US dollar weakened significantly against the yen. The drop in the USD/JPY quotes exceeded 100 points.

Weak economic reports also put pressure on the US currency. In July, the producer price index fell by 0.1%. Experts expected the indicator rose by 0.1%. The number of initial claims for unemployment benefits increased by 1.2% to 244,000.

The representative of the Federal Reserve Dudley, who has the right to vote at the meetings of the Central Bank, is concerned about the low level of inflation in the country. It takes some time for inflation to reach the target level of 2%. The official also believes that economic growth may be low-key.

Today, the attention of the financial market participants will be focused on the inflation report in the US. Experts expect that consumer prices rose by 0.2% in July.

Market Indicators

Yesterday, aggressive sales were observed in the US stock market. Major stock indexes closed in the negative zone: #SPY (-1.41%), #DIA (-0.86%), #QQQ (-2.14%).

The 10-year US government bonds yield demonstrates negative dynamics. At the moment, the indicator is at the level of 2.20%.

The dollar index (#DX) closed the trading session in the negative zone (-0.14%).

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

  • – inflation report in the US – 15:30 (GMT+3:00);
  • – speeches of the FOMC representatives Kaplan and Kashkari – 16:40 (GMT+3:00) and 18:30 (GMT+3:00), respectively.

by JustForex, 2017.08.11

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.