US dollar
The conflict in the Middle East has restored the status of the safe as a safe asset, but that has also been its fall. The inverse correlation with the US shares. Investors perceive fire as the end of the twelve -day war between Israel and Iran and are buying shares.
Transport merchants are actively using the US dollar as a financing currency. Since the beginning of the year, its effectiveness in arbitration against a basket of emerging market currencies has exceeded 8%. The use of transport operations has produced just over 2%, while the and have not been profitable.
The weakening of the US dollar is part of the White House plans. Donald Trump is pressing the Central Bank to reduce rates by 2 to 2.5 percentage points. The president intends to appoint Jerome Powell's successor earlier than expected, already in this fall. The appearance of a shade fed chair will exert pressure on the USD index.
Stock indices
The decallation of the conflict in the Middle East led more to the maximum record. A new wave of interest in artificial intelligence has allowed to update its historical peaks. The growth of American actions rates at the end of June is called a rally of technological giants. Nvidia (Nasdaq 🙂 has surpassed Microsoft (Nasdaq 🙂 in terms of market capitalization, becoming the most expensive company in the world.
The support of the White House is creating a tail wind for US stocks. Uu, however, the market is very confident in Donald Trump's intention to extend the 90 -day delay in import tariffs or limit to a minimum universal rate of 10%. The president of the United States has repeatedly emphasized that their policies have brought billions of dollars to the budget.
Its main economist, Stephen Mnuchin, has estimated the entry of tariff money from $ 3 to $ 5 billion in 10 years. As the expiration date approaches, fear can return to markets.
The inflated fundamental valuations of the S&P 500 are causing concern. The price / profits ratio exceeds 22. This is 35% higher than the historical average for the indicator.
The FXPRO analysts team
