On Friday, the US dollar weakened against the basket of major currencies. After two-day talks, the US and China did not come to any agreement. Moreover, the countries exchanged additional duties. Also, the US currency was under pressure due to the speech by the Federal Reserve chairman, Powell, in Jackson-Hole. The official supported a further gradual increase in the interest rates. At the same time, the Federal Reserve chairman is concerned about the lack of accelerating inflation and the state of the real estate market. The US dollar index (#DX) closed in the negative zone (-0.54%).
This week, investors’ attention will be focused on trade negotiations on the NAFTA contract renewal. We also recommend paying attention to the following reports from the US and the Eurozone. On Wednesday, August 29, the revised value of US GDP for the second quarter will be published. On Thursday, August 30, the US Department of Commerce will publish the core personal consumption expenditure price index in the US. On Friday, August 31, there will be data on inflation in the Eurozone.
The “black gold” prices are consolidating. At the moment, futures for the WTI crude oil are testing a mark of $68.50 per barrel.
Market Indicators
On Friday, the bullish sentiment was observed in the US stock market: #SPY (+0.60%), #DIA (+0.53%), #QQQ (+0.93%).
At the moment, the 10-year US government bonds yield is at the level of 2.81%-2.82%.
The news feed on 2018.08.27:
IFO business climate index in Germany at 11:00 (GMT+3:00).
The markets of Great Britain are closed due to the holiday.
