Yesterday, the US dollar strengthened against a basket of major currencies despite the release of mixed economic data. Yesterday, preliminary data on the US GDP were published, according to which GDP (q/q) counted to 2.0% in the second quarter, as experts forecasted. Pending home sales index was published, which fell by 2.5% in July, although investors expected growth by 0.1%. The US dollar index (#DX) closed in the positive zone (+0.34%).
The trade war between the US and China is still in the focus of attention. Yesterday, spokesman for China’s Ministry of Commerce, Gao Feng, said that China would not immediately respond to new threats from the US President, Donald Trump, to impose new tariffs on Chinese goods. According to the official, China intends to prevent the escalation of the trade war, and not accelerate it.
Meanwhile, the Australian and New Zealand dollars are getting cheaper amid falling demand for commodity currencies due to a continuous trade dispute between the US and China, as well as a slowdown in global economic growth. Investors expect additional signals regarding US-China trade relations.
The “black gold” prices are consolidating. Currently, futures for the WTI crude oil are testing the $56.25 mark per barrel.
Market Indicators
- Yesterday, the bullish sentiment was observed in the US stock markets: #SPY (+1.28%), #DIA (+1.35%), #QQQ (+1.53%).
- The 10-year US government bonds yield is recovering. At the moment, the indicator is at the level of 1.53-1.54%.
The News Feed on 2019.08.30:
- Consumer price index in the Eurozone at 12:00 (GMT+3:00);
- Canada’s GDP data at 15:30 (GMT+3:00);
- Personal spending in the US at 15:30 (GMT+3:00);
- Michigan consumer expectations and sentiment at 17:00 (GMT+3:00).
