The US Dollar Is Growing As a Safe-Haven Asset

The US dollar rose against a basket of major currencies amid a sharp drop in oil prices. The US dollar index (#DX) closed in the positive zone (+0.22). Investors have started investing in the US currency, as it is a safe-haven asset. This week, experts expect the EU summit, where measures to fight the effects of coronavirus will be discussed.

The EU and the UK resume negotiations on relations between the parties after Brexit, which stopped in early March. In March, the parties managed to conduct only the opening round of negotiations, after which there was an outbreak of coronavirus. A new round of negotiations will be held in the format of a video conference and will last all week. The Scottish government, in turn, asked British Prime Minister Boris Johnson to extend the Brexit transition period by 2 years.

The "black gold" prices are recovering slightly after a sharp drop. Currently, futures for the WTI crude oil are testing the $19.05 mark per barrel. At 23:30 (GMT+3:00), API weekly crude oil stock will be published.

Market indicators

Yesterday, there was the bearish sentiment in the US stock market: #SPY (-1.76%), #DIA (-2.39%), #QQQ (-1.18%).

The 10-year US government bonds yield fell again. At the moment, the indicator is at the level of 0.60-0.61%.

The news feed on 2020.04.21:
  • - Data on the UK labor market at 09:00 (GMT+3:00);
  • - German ZEW economic sentiment at 12:00 (GMT+3:00);
  • - Statistics on retail sales in Canada at 15:30 (GMT+3:00);
  • - Existing home sales in the US at 17:00 (GMT+3:00).

by JustForex, 2020.04.21

We advise you to get acquainted with the daily forecasts for the major currency pairs.

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.

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