The Dollar Index Is Consolidating. Investors Expect Additional Drivers

The US dollar is consolidating near local lows against a basket of major currencies. Yesterday, the US dollar index (#DX) closed the trading session with a slight decrease (-0.07%). The trade conflict between Washington and Beijing, as well as the uncertainty concerning Brexit, is still in the spotlight. New Zealand and Australian dollars have been recovering after a sharp collapse the day before. It should be recalled that the RBNZ unexpectedly lowered its key interest rate to a record low of 1.00%.

US President Donald Trump supports the decision of the US Treasury to designate China as a currency manipulator. Trump emphasized: "Companies are moving out of China by the thousands, and our country is doing very well. We're going to see how it all works out. Somebody had to do this with China because they were taking hundreds of billions of dollars a year out of the United States and somebody had to make a stand. So I think our country is doing really well. " Trump also criticized the Fed again. The US President believes that the Federal Reserve is the problem of the American economy but not China.

The "black gold" prices have been recovering after a significant drop since the beginning of this month. Currently, futures for the WTI crude oil are testing the $52.50 mark per barrel.

Market Indicators

Yesterday, there was a variety of trends in the US stock markets: #SPY (+0.06%), #DIA (-0.02%), #QQQ (+0.54%).

The 10-year US government bonds yield won back part of the losses. At the moment, the indicator is at the level of 1.72-1.72%.

The news feed for 2019.08.08:

Today, the news feed is calm enough. At 15:30 (GMT+3:00), data on the initial jobless claims will be published in the US.

by JustForex, 2019.08.08

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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