14.08.2019: World about to fall in financial crisis (USD, Dow Jones, CAD)


Risk appetite declined again after pessimistic statistical data from China disappointed the market and showed the weakest in 17 years growth in the country’s industrial sector, reminding traders about a slowdown in the economy. Investors focused on safe-haven assets again. The greenback remains one of the most wanted safe currencies. After several highly volatile sessions, the US dollar index soared by 40 points aiming to break through 98.00. Besides, the demand for the debt obligations of developed countries also increased. Analysts are concerned by the dynamics of yield curves for US government bonds. Today the charts of 10-year and 30-year bonds nosedived due to high demand. Notably, 10-year US government bonds worry experts the most. Their curve slid even lower than the curve of 2-year bonds. Previously, this phenomenon occurred during the financial crisis of 2008 and was called the “inversion of the yield curve.” Moreover, inversion is considered to be a signal of a looming recession. Europe’s economy is also going through hard times. Thus, its industrial production also shrank. Obviously, it affected stock markets, and the Dow Jones is headed down – to 25,800 – again. Meanwhile, oil quotes are also on the way to lows, so commodity currencies notably weakened. The loonie gave in to the greenback by 0.6%. The USD/CAD pair rose to 1.3300. This is how market situation looks like at the end of the trading day today. Watch video news on InstaForex TV channel and find out what tomorrow brings. See you!

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