The US Dollar Is Consolidating

The US currency is consolidating against a basket of currency majors. The US dollar index (#DX) closed yesterday's trading session with a slight decline (-0.05%). It became known that the Democrats of the US House of Representatives are working on a stimulus package $2.2 trillion worth to combat the coronavirus, which could be voted on next week. However, Donald Trump's statements that he does not promise a peaceful transfer of power if he loses the November 3 presidential election complicate the situation.

Yesterday, weak economic data from Germany were published. Germany's IFO business climate index counted to 93.4, while experts forecasted 93.8. As stated in the bulletin of the European Central Bank, the coronavirus pandemic is a major source of uncertainty for the global economy. According to the latest data, the Eurozone GDP fell by 11.8% in the second quarter. In the third quarter, the figures may improve, experts say, but not significantly. The regulator decided to support financial institutions in the Eurozone by issuing targeted loans, known as TLTROs, for a negative rate of minus 1%. 338 banks received 174.5 billion euros.

The "black gold" prices are declining. At the moment, futures for the WTI crude oil are testing $40.00 per barrel.

Market indicators

Yesterday, there was the bullish sentiment on the US stock market: #SPY (+0.27%), #DIA (+0.19%), #QQQ (+0.47%).

The 10-year US government bonds yield is consolidating. The indicator has reached 0.66-0.67%.

The news feed for 2020.09.25:
  • - Durable goods orders in the US at 15:30 (GMT+3:00).

by Justforex, 2020.09.25

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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