Dollar Retreats Amid Rising Tensions in the United States

Ibeth Rivero

The S&P 500 advanced 0.82 percent, adding 25.09 points and closing yesterday's session at 3,080.82. Conversely, the NASDAQ 100 Stock Index gained 0.61 percent, adding 58.42 points and closing Tuesday's session at 9,657.31.

Dollar strugglesThe dollar struggled during Tuesday's session, as protests continue across the United States for the eighth consecutive day.

The US dollar index, which measures the Greenback's performance against a bundle of its competitors, dropped by 0.92 percent yesterday, amid the rising tensions linked with the escalation of the protests in the US and the threats of President Donald Trump to use the military to hinder the advance of them.

Thousands of protesters in New York City decided to keep demanding justice despite Mayor Bill de Blasio's announcement of a night long curfew. Additionally, protests continued in cities like Houston and Washington D.C., defying the police response.

Despite the situation, the main US Stock Indexes advanced. The S&P 500 advanced 0.82 percent, adding 25.09 points and closing yesterday's session at 3,080.82. Conversely, the NASDAQ 100 Stock Index gained 0.61 percent, adding 58.42 points and closing Tuesday's session at 9,657.31.

Oil markets also advanced for the fourth straight session, amid the rising positive expectations regarding the future of the OPEC+ agreement, which consists of limiting the supply in order to keep the prices under control. Brent Oil Futures advanced 3.26 yesterday, while West Texas Intermediate crude oil futures value increased by 4.99 percent.

A senior US government official commented on Tuesday that US administration is quite hopeful regarding the OPEC+ supply cut compliance. The comment came after Russia's energy ministry confirmed that the production in the Eurasian country fell to 8.59 million barrels per day last month.

“We trust that other major oil producers will not revert to policies that impede an orderly and swift recovery from these unprecedented global economic conditions,” he said.

The world's geopolitical scene it's not at its best either. The British Prime Minister wrote in the Times that the UK is not willing to withdraw its support to Hong Kong protestors if the Chinese government insists on imposing its, already controversial, national security law.

“If China proceeds, this would be in direct conflict with its obligations under the joint declaration, a legally binding treaty registered with the United Nations,” wrote Johnson, “If China proceeds to justify their fears, then Britain could not in good conscience shrug our shoulders and walk away; instead we will honour our obligations and provide an alternative,” he added.

Advertisement
Heavy swings in the dollar make highly profitable trades
Make Your Move Now!

Australia Is Officially Amid a Recession

According to the Australian Bureau of Statistics, the country's GDP contracted 0.3 percent on the first quarter, which according to the country's treasurer confirms that the country is now amid an economic recession.

“Based on what we know from Treasury, we’re going to see a contraction in the June quarter, which is going to be a lot more substantial than what we have seen in the March quarter,” explained Josh Frydenberg after confirming that the country is facing an economic recession.

The Reserve Bank of Australia recently decided to leave its benchmark cash rate unchanged on its last meeting, while signaling that it will continue doing whatever is needed to aid the economy. The bank also confirmed that the country is currently facing its worst downturn since the 1930s.

By 7:07 GMT the Australian Dollar advanced 0.62 percent against the Greenback, hitting the 0.6937 level.

About the Author
Ibeth Rivero

Ibeth contributes daily market commentary in both English and Spanish (both of which she speaks fluently) and she also manages the DailyForex mobile app to ensure that traders around the world are getting important market updates in real time.

Comments

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments
Add Comment

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.