The US dollar continued to decline against a basket of currency majors due to tense trade relations between the US and China. Yesterday, the US dollar index (#DX) closed trading in the negative zone (-0.56%). The US dollar was under pressure due to weak data on ISM non-manufacturing PMI.
US-China relations continue to escalate. The People’s Bank of China set the yuan reference rate at its lowest level for the year. The Chinese yuan collapsed due to these events, which sparked rumors that Beijing was ready to depreciate in order to offset the negative effects of US tariffs. Trump, in turn, accused China of currency manipulation. We recommend following current information on this issue.
The British pound is still under pressure. The EU believes that the new British Prime Minister, Boris Johnson, does not plan to make a deal on Brexit. As it became known, the official does not intend to resume negotiations with the European Union and look for solutions to exit Britain. It means that it is more likely that the country will leave the bloc without a deal before October 31 of the current year.
Today, during the Asian trading session, economic data from New Zealand and Australia have been published. Thus, the employment rate in New Zealand increased by 0.8% in the second quarter, while experts forecasted growth by only 0.3%. New Zealand’s unemployment rate counted to only 3.9% in the second quarter instead of 4.3%. The Reserve Bank of Australia decided on the interest rate and left the indicator unchanged at 1.00%.
The “black gold” prices are rising after the collapse the day before. At the moment, futures for the WTI crude oil are testing a mark of $55.00 per barrel. At 23:30 (GMT+3:00) API weekly crude oil stock will be published.
Market Indicators
- Yesterday, aggressive sales were observed in the US stock markets: #SPY (-3.01%), #DIA (-2.91%), #QQQ (-3.53%).
- The 10-year US government bonds yield has been recovering after a significant fall. At the moment, the indicator is at the level of 1.75-1.76%.
The news feed for 2019.08.06:
- JOLTS job openings at 17:00 (GMT+3:00).
