HomeContributorsFundamental AnalysisThe US Dollar Is Consolidating

The US Dollar Is Consolidating

The US dollar did not change a lot against the basket of major currencies amid low trading activity. Investors took a wait-and-see attitude before the publication of important economic releases from the US at the end of this week. The dollar index (#DX) closed in the negative zone (-0.20%). It also became known that the Fed officials began discussing possible conditions, upon the occurrence of which they would start lowering the base interest rate. Chicago Fed President, Charles Evans, believes that if inflation is stable below 2%, this will mean that the current rate of monetary policy is retaining, and then the rate will have to be lowered.

The Brexit delay could seriously affect the financial standing of the European Union. If the UK remains in its composition after the May elections to the EU Parliament, the bloc will be forced to pay salaries to the British deputies. This means additional expenses of 21 million euros.

Demand for safe assets due to tension regarding Iran has increased. It should be recalled that US President Donald Trump decided not to extend all Iran sanction waivers which would end by May 2. In turn, Iran has threatened to close the Strait of Hormuz, if Tehran cannot use it because of US restrictions.

The “black gold” prices continue to show positive dynamics. Oil quotes have updated annual highs again, which supports the demand for commodity currencies. At the moment, futures for the WTI crude oil are testing $66.00 per barrel. At 23:30 (GMT+3:00) API weekly crude oil stock will be published.

Market Indicators

  • Yesterday, there was a variety of trends in the US stock market: #SPY (+0.09%), #DIA (-0.18%), #QQQ (+0.28%).
  • The 10-year US government bonds yield is at the level of 2.58-2.59%.

The news feed for 2019.04.23:

  • New home sales in the US at 17:00 (GMT+3:00).
JustForex
JustForexhttps://justforex.com/?utm_source=actionforex&utm_medium=article&utm_campaign=analytics
JustForex is a broker which helps people to earn on the financial markets providing them with the beneficial conditions. Being an international broker and working with clients from different countries we understand that every person is unique with his own values, no matter whether he is a trader or a partner. When our team develops the services of the company, we take into account the variety of cultures, nations, trading experience and demands of our clients. JustForex offers several trading account types with a wide choice of trading instruments and everyone can find the most suitable one according to his preferences.

Featured Analysis

Learn Forex Trading