The US Dollar Is Declining Due To Global Risks

Fundamental analysis of Forex market

The US dollar weakened against a basket of major currencies due to the impact of trade conflicts on the country’s economy. The dollar index (#DX) closed in the negative zone (-0.62%). Global trade relations are escalating. Yesterday, the President of the Federal Reserve Bank of St. Louis, James Bullard said that the regulator might be forced to reduce interest rates due to low inflation and the threat posed by the US trade conflict with China. The greenback was under pressure due to weak statistics on economic activity in the manufacturing sector of the United States. In addition, US President Donald Trump entrusted to exclude India from the list of countries that had trade privileges from June 5. He believes that India does not provide equitable and reasonable access to its markets.

The Australian dollar strengthened slightly against the US dollar during the Asian trading session. Thus, the Reserve Bank of Australia, as expected, lowered the interest rate for the first time in three years from 1.50% to 1.25%. Also, a report on retail sales was published, the figure fell by 0.1% in April, while experts forecasted growth by 0.2%.

The “black gold” prices are declining due to global risks. At the moment, futures for the WTI crude oil are testing the mark of $52.90 per barrel.

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Market Indicators

  • Yesterday, there was a variety of trends in the US stock market: #SPY (-0.25%), #DIA (+0.11%), #QQQ (-2.20%).
  • The 10-year US government bonds yield has become stable after a continuous fall. At the moment, the indicator is at the level of 2.10-2.11%.

The news feed on 2019.06.04:

  • UK construction PMI at 11:30 (GMT+3:00);
  • Consumer price index in the Eurozone at 12:00 (GMT+3:00).

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