The US dollar has reached three-week lows against the basket of major currencies. The dollar index (#DX) closed in the negative zone (-0.06%). Yesterday, Fed Chairman Jerome Powell said that the regulator closely followed the US trade disputes with other countries, and was ready to take appropriate measures to stimulate economic growth in order to maintain a strong labor market and inflation around a target of 2%. Investors took his speech as a signal that the Fed was ready to consider an issue of lowering interest rates, if necessary.
Yesterday, weak economic reports were published in the UK and the Eurozone. Thus, the UK construction PMI fell to 48.6 in May, while experts expected 50.5. Eurozone inflation slowed down to 1.2% in May, although experts forecasted an increase by 1.3%. Today, during the Asian trading session weak data on Australian GDP have been published: the figure has risen in the first quarter only by 0.4% instead of the expected growth by 0.5%.
The “black gold” prices are consolidating. At the moment, futures for the WTI crude oil are testing $52.95 per barrel. At 17:30 (GMT+3:00), a report on the US crude oil inventories will be published.
Market Indicators
- Yesterday, aggressive purchases were observed in the US stock market: #SPY (+ 2.17%), #DIA (+ 2.07%), #QQQ (+ 2.82%).
- The 10-year US government bonds yield is recovering. At the moment, the indicator is at the level of 2.12-2.13%.
The news feed on 2019.06.05:
- UK services PMI at 11:30 (GMT+3:00);
- ADP nonfarm employment change at 15:15 (GMT+3:00);
- ISM non-manufacturing PMI in the US at 17:00 (GMT+3:00);
- Fed’s Beige Book at 21:00 (GMT+3:00).
