The US Dollar Continues to Decline. The FOMC Minutes Are in the Spotlight

The US dollar is declining against a basket of currency majors. The US dollar index (#DX) has updated twoyear lows and closed in the red zone (0.63%). The US currency is still under pressure due to uncertainty concerning the new stimulus package for the country’s economy. The situation is also complicated by the fact that US President Donald Trump has postponed trade negotiations with China. “I don’t want to talk to them right now. What China did to the world was unthinkable. I canceled talks with China,” he said at a press conference in Arizona. Publication of the FOMC minutes will be the key event today.

The British pound has been growing against the US dollar. UK consumer price inflation rose from 0.6% in June to 1.0% in July, while core inflation also rose from 1.4% in June to 1.8%. However, it is not known what expects the British pound next, as its growth may be suspended due to the next round of negotiations on the EUUK trade deal after Brexit.

The “black gold” prices are declining. At the moment, futures for the WTI crude oil are testing the $42.70 mark per barrel. At 17:30 (GMT+3:00), US crude oil inventories will be published.

Market indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (+0.00%), #DIA (+0.14%), #QQQ (0.12%).

The 10year US government bonds yield has been declining. At the moment, the indicator is at the level of 0.650.66%.

• Consumer price index in the Eurozone at 12:00 (GMT+3:00);
• Inflation report in Canada at 15:30 (GMT+3:00);
• Publication of the FOMC minutes at 21:00 (GMT+3:00).

by JustMarkets, 2020.08.19