The Dollar Index Has Updated Annual Highs

The US dollar is rising against a basket of world currencies. The dollar index (#DX) set new annual highs. The US Department of Commerce lifted some of the sanctions on Chinese telecom giant Huawei. This step became a relief for the markets and lowered investors' concerns about the further escalation of trade tensions between Washington and Beijing. The recovery of the US government bond yield supports the greenback.

At the moment, financial market participants have taken a wait-and-see attitude before the publication of the FOMC minutes. We recommend paying attention to the comments by the Fed representatives. Earlier, the head of the Central Bank Jerome Powell said that the regulator would not rush to change interest rates. The official also mentioned that the Federal Reserve was considering a transition towards a target inflation range instead of the fixed goal that is currently at 2%.

The "black gold" prices have been decreasing amid the growth of oil reserves in the United States, according to API. At the moment, futures for the WTI crude oil are testing the mark of $62.45 per barrel.

Market Indicators

Yesterday, major US stock indices closed in the positive zone: #SPY (+0.90%), #DIA (+0.82%), #QQQ (+1.04%).

The 10-year US government bonds yield has become stable. Currently, the indicator is at the level of 2.41-2.42%.

The news feed on 2019.05.22:

- Consumer price index in the UK at 11:30 (GMT+3:00);
- Statistics on retail sales in Canada at 15:30 (GMT+3:00);
- Publication of the FOMC meeting minutes at 21:00 (GMT+3:00).

by JustForex, 2019.05.22

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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