The US dollar index is consolidating near 104.00. US Treasury Secretary Janet Yellen said yesterday that the national economy remains strong as it is supported by high levels of consumer spending, but there are still signs of a slowdown in some sectors. The official added that she expects further decline in inflation over the next two years, and the banking system now has enough liquidity to cope with any crisis. Investors are looking forward to the US Federal Reserve meeting next week. Despite Yellen’s comments, most of them are confident that the rate will remain the same. The probability of a rate hike is now 33%. If the mood does not change, the dollar will continue to decline.
SELL STOP 103.70/TP 103.10/SL 103.90
EUR/USD
The EUR/USD pair is growing and trading at the level of 1.07. According to the data published yesterday, industrial production in Germany increased by 0.3% in April, which is less than the forecasted growth of 0.6%, and decreased by 1.6% in annual terms. Experts believe that the risks of recession in the German economy will continue to grow, and note that the momentum that the national industry received as a result of the easing of global supply problems and lower gas prices earlier this year is almost lost. Despite this, traders are confident that the main task of the ECB will be to fight inflation. The regulator is expected to raise the rate by 0.25% at its meeting next week. Given the above, the prospect of tighter European monetary policy will continue to support the growth of the euro.
BUY STOP 1.0730/TP 1.0800/SL 1.0700
BRENT
Oil maintains positive dynamics and approaches the level of $77 per barrel. Prices are supported by the intention of Saudi Arabia to reduce fuel production to 9.0 million barrels per day, OPEC + plans to reduce production by 1.4 million, as well as a decrease in oil reserves in the United States. According to a report from the Energy Information Administration, oil inventories fell by 0.4 million barrels last week, indicating a growing demand for fuel in the summer season. Given the above, we recommend holding long positions on Brent oil.
BUY STOP 77.50/TP 79.50/SL 76.80
