USD weakened yesterday against the majors. The USD closed in the negative zone (-0,56%). The pressure on USD is caused by the stream of weak economic reports. For example, the US trading balance saldo lowered in June by 54B USD while the experts expected a descend by 53,50B. The investors are in a negative mood due to the lack of progress in the US/China relationships.
However, today the financial market participants are in a better mood since both China and US are willing to continue negotiations in October. Until the negotiations begin, the leaders will remain in touch to make the negotiations most productive. Both sides want a positive outcome.
GBP strengthened against the USD since the lawmakers of the British government approved the bill to prevent Boris Johnson from leaving the US without a deal, and later refused the additional elections in October proposed by the PM. This bill officially obliges Johnson to request an extension of Brexit until both sides arrive to an acceptable bill.
The Bank of Canada finalized the key interest rate. The regulator kept the indicator at the same level of 1.75%, as expected.
The prices on oil are consolidating after a sharp growth. Right now the WTI futures are testing the mark of 56.15 USD/barrel. At 18:00 (GMT+3:00) the US will publish the report on the crude oil inventories.
Market Indicators
- The US stock markets are in a bullish mood: #SPY (+1,14%), #DIA (+0,96%), #QQQ (+1,44%).
- The US Treasury 10-year obligations slightly grew in value. Right now the indicator is at 1.50-1.51%.
The Economic News Feed for 05.09.2019:
- ADP Nonfarm Employment Change (Aug) (US) – 15:15 (GMT+3:00);
- Initial Jobless Claims (US) – 15:30 (GMT+3:00);
- ISM Non-Manufacturing PMI (US) – 17:00 (GMT+3:00).
