The US Dollar Is Declining After Statements by Donald Trump

The US dollar fell significantly against a basket of major currencies during yesterday's trading. The dollar index (#DX) closed in the red zone (-0.12%) yesterday. The sentiment of financial market participants is ambiguous after comments by US President D. Trump regarding a trade agreement with China. Thus, according to the President’s words, he doesn’t have a deadline for reaching a trade agreement with China, and perhaps it is better to wait until the end of the US presidential election in November 2020. It should be recalled that earlier, Trump announced the introduction of duties for Brazil and Argentina. The President also threatens France with imposing tariffs on French goods due to a tax on digital services. Yesterday, US Commerce Secretary Wilbur Ross said that despite negotiations with the Chinese side were continuing, officials were not planned to meet.

The British pound strengthened against the US dollar amid the publication of positive economic data. So, the construction PMI in the UK was published yesterday, which counted to 45.3 in November and turned out to be better than the forecasted value of 44.5.

Today, weak economic data have been published in Australia during the Asian trading session. So, GDP (q/q) grew only by 0.4% in the third quarter, while experts expected the indicator to grow by 0.5%.

The "black gold" prices are rising. Currently, futures for the WTI crude oil are testing the $57.00 mark per barrel.

Market Indicators

Yesterday, there was the bearish sentiment in the US stock market: #SPY (-0.67%), #DIA (-0.97%), #QQQ (-0.78%).

The 10-year US government bonds yield has declined significantly. At the moment, the indicator is at the level of 1.72-1.73%.

• - UK composite PMI at 11:30 (GMT+2:00);
• - Services PMI in the UK at 11:30 (GMT+2:00);
• - ADP nonfarm employment change in the US at 15:15 (GMT+2:00);
• - ISM non-manufacturing PMI at 17:00 (GMT+2:00);
• - Bank of Canada interest rate decision at 17:00 (GMT+2:00).

by JustMarkets, 2019.12.04

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.