Today the market is dominated by optimism. Commodity currencies received support after reports of the resumption of negotiations between the US and China to resolve their trade conflict. Commodity value is also increasing today. Oil reached its highest level in a month, taking into account reports about an oil reserves decrease in the US 3 times faster than expected on the market. Earlier we also learned about the reduction in the number of drilling rigs amid the lower profitability of shale oil extraction due to low prices. In addition, OPEC countries finally agreed on the date of their meeting. It will be held at July 1. At the same time, the probability of extending the agreement on reducing oil extraction has increased. Gold rose to $1,380, despite the growing demand for risky assets, instead taking into account the weakening of the USD and signals from the FED representatives to soften monetary policy.
As for macroeconomic reports, they also had a positive impact on the market for commodity currencies. The New Zealand dollar received support with the publication of GDP data for the first quarter. According to the report, the growth rate of New Zealand's economy is in line with forecasts.
Today the Bank of England will make a decision about the rate change, which is unlikely to be revised upwards. Therefore, the GBP today will not be able to count on support.
The afternoon will be less saturated. We expect only unemployment data in the US, as well as the index of production activity from the Philadelphia FED. However, the USD has every chance to recover slightly, after a decline against the major currencies the day before, cased by the above-mentioned messages regarding a US monetary policy easing.
