US dollar slightly improves expecting Friday economic reports

Posted 09 August, 2018

The US dollar again enjoys demand after the yesterday's trading session. The currency mostly gets support from the escalation of the US-China trade conflict, which took the centre stage this week. After the threats crossover, the players are not highly interested in risk assets and choose US dollar for now. However, the greenback lacks a strong driver for the more stable upturn.

The market remains focused on the trade conflict, though it will have to give a glance at the economic reports to be released this Friday. Specifically, the US inflation data will arouse the main interest. The market still highly expects two more interest rate revisions, but with the observed trade war, the fears of the conflict consequences can turn the table, which naturally may affect the outlook and US Federal Reserve's stance.

As a result, it is very important that the inflation will be good or at least show that the economy is not affected by the duties so far, while domestic demand stays strong being a reason for further monetary normalization.

The euro-to-US dollar keeps fighting for the 1.16 handle and the decisive word tests with the US inflation figures. The break of the transitional support at 1.1575 will open the path to 1.1550 and further. The sterling hits the summer bottom at 1.2840. If the sterling-to-US dollar fails to recover above 1.29, the rate can plunge below 1.28.

Previous forecast

10 August, 2018 16:38

← European traders to monitor Turkish lira development in near term

The euro keeps losing grounds against the US dollar on Friday. Today, the rate fell down to some 1.1440 breaking the 1.15 handle, which was a strong support beginning from the start of summer. As a result, this was a downward signal and sellers prevent all recovery attempts immediately.

European traders to monitor Turkish lira development in near term

Next forecast

08 August, 2018 15:08

Market players face lack of market guides →

The economic reports are scarce this week. The global markets may get interesting figures only on Friday once the UK and USA release economic reports. Till that time, the players cannot choose but monitor the development of the US-China trade conflict, which expectedly showed new development. The markets are now running from the risks after a short-lived break.

Market players face lack of market guides
Write a comment
Prove you’re not a bot + 18 = 24