Demand for the American Currency Remains at a High Level

Last week, the US dollar appreciated significantly relative to the major currencies. The dollar index (#DX) increased by more than 1.2%. Support was provided by optimistic economic reports, the growth of the government bonds yield and prospects for the implementation of tax reform in the United States. Let’s remind that last week the budget plan for 2018 was adopted. Thanks to this, Donald Trump will be able to implement his tax reform without the support of Democrats. According to preliminary data, in the third quarter, the US GDP growth will be 3.0%, which is higher than the market expectations of 2.5%. At the moment, the probability of an increase in the Fed’s key interest rate in December 2017 exceeds 97%.

The news background on the current trading week will be very saturated. The central banks of Japan, the United States and Britain will take decisions on monetary policy. We recommend that you pay attention to the comments and rhetoric of regulators’ representatives. On Friday, November 03, will be published a report on the labor market in the United States.

The oil quotes continue to show positive dynamics. Last week, futures for the WTI crude oil rose by more than 3.5%. At the moment, quotes are testing the mark of $54 per barrel.

Market Indicators

The main US stock indices are near historical highs. Trades closed on Friday in the positive zone: #SPY (+0.82%), #DIA (+0.14%), #QQQ (2.91%).

In the Asian trading session, the 10year US government bonds yield moved away from local extremes. At the moment, the indicator is at the level of 2.402.41%.

Statistics on personal spendings in the US at 14:30 (GMT+2:00);The preliminary data on inflation in Germany at 15:00 (GMT+2:00).

by JustMarkets, 2017.10.28