The US Dollar Moved Away from Local Highs

Yesterday, the US dollar weakened against the major currencies. The dollar index (#DX) closed the trading session in the negative zone (0.46%). This movement was mostly caused by technical factors. Investors fixed profits on the eve of the Fed’s meeting, which will be held on Wednesday, November 1. This week also will be published a report on the labor market in the United States. At the same time, demand for US currency remains at a fairly high level.

The Bank of Japan, as expected, kept interest rates at the same level. The regulator slightly lowered the forecast for inflation in 2017. The central bank plans to adhere to the current policy of monetary policy. In October, the index of business activity in the manufacturing sector of China fell from 52.4 to 51.6. This statistics puts pressure on the dynamics of the Australian dollar.

The price of “black gold” is stable. At the moment, futures for the WTI crude oil are consolidating in the range of $53.90$54.10 per barrel. Participants of the financial markets are expecting a preliminary report on the weekly crude oil inventories in the US from the American Petroleum Institute.

Market Indicators

The major US stock indices showed a variety of trends: #SPY (0.37%), #DIA (0.36%), #QQQ (+0.22%).

The 10year US government bonds yield continues to decline. At the moment the indicator is at the level of 2.362.37%.

The preliminary data on inflation and GDP of the Eurozone at 12:00 (GMT+2:00);Canada’s GDP Report at 14:30 (GMT+2:00);The consumer confidence index in the USA at 16:00 (GMT+2:00);Statistics on the labor market in New Zealand at 23:45 (GMT+2:00).

We also recommend you to pay attention to the head of Bank of Canada Poloz’s speech.

by JustMarkets, 2017.10.31