The Dollar Index Has Moved Away from Two-Year Highs

During yesterday's trading, the greenback weakened against a basket of world currencies. The dollar index (#DX) moved away from two-year highs and closed the trading session in the negative zone (-0.16%). Investors began to partially fix positions after a continuous rally of the US currency. The threat of economic consequences from the trade war with China raised expectations for the Fed to cut interest rates this year. The US currency is under pressure due to a fall in the 10-year US government bonds yield.

Elections to the European Parliament, as well as the situation concerning Brexit, are still in the focus of attention. The resignation of the leader of the House of Commons, Andrea Leadsom, raises the pressure on the British Prime Minister. At the moment, most experts agree that Theresa May may announce her resignation in the near future. Today, financial market participants will assess important economic releases from the UK and the US.

The "black gold" prices have been recovering after a sharp collapse the day before (more than 5%). At the moment, futures for the WTI crude oil are testing $58.50 per barrel.

Market Indicators

Yesterday, the major US stock indices closed in the negative zone again: #SPY (-1.22%), #DIA (-1.10%), #QQQ (-1.53%).

The 10-year US government bonds yield continues to show negative dynamics. Currently, the indicator is at the level of 2.31-2.32%.

The news feed on 2019.05.24:

- Report on retail sales in the UK at 11:30 (GMT+3:00);
- Core durable goods orders in the US at 15:30 (GMT+3:00).

by JustForex, 2019.05.24

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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