Today, the market is experiencing an increase in the demand for safe assets. Many analysts were skeptical about the likely conclusion of a trade deal between China and the United States in the near future to begin with, as well as to the positive signals about progress in the trade negotiations, and now the latest reports indicate that the deal is unlikely to take place this year. Compounding the situation is a bill that supports anti-government demonstrations in Hong Kong, which certainly does not contribute to the reconciliation of China and the United States.
Therefore, the dollar as a risky asset is under pressure today. The USD is also unlikely to experience support from the Fed. According to the minutes published yesterday, the regulator is not going to change the rate if the situation in the economy does not change dramatically. The euro may also fall in price with the publication of the ECB minutes.
In the second half of the day, we also expect the index of industrial activity from the Philadelphia Fed, data on sales in the secondary real estate market in the United States, and in Canada, the head of the Bank of Canada will make a speech. Therefore, volatility is expected to be relatively high until the end of the day.
