The US Dollar Index Has Updated Two-Week High

Demand for the US currency is still high after the conclusion of an agreement between the United States, Mexico and Canada. Yesterday, the US dollar index (#DX) updated its twoweek high and closed in the positive zone (+0.22%). Meanwhile, the US dollar slightly weakened against the Japanese yen. This movement is caused mostly by technical factors. Today, participants have taken a waitandsee attitude before publication of the important economic reports from the United States.

The euro weakened against a basket of currencies due to resumed concerns about the Italian budget. Yesterday, Deputy Prime Minister of Italy, Luigi Di Maio, said that the government did not intend to deviate from its stated goals for government expenditures, which implied a budget deficit of 2.4% of GDP. However, this indicator significantly exceeds the limit value set by the European Union.

The “black gold” prices are consolidating. At the moment, futures for the WTI crude oil are testing a mark of $75.35 per barrel. At 17:30 (GMT+3:00), a report on the US crude oil inventories will be published.

Market Indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (0.06%), #DIA (+0.31%), #QQQ (0.23%).

At the moment, the 10year US government bonds yield is at the level of 3.063.07%.

The index of economic activity in the UK services sector at 11:30 (GMT+3:00);ADP nonfarm employment change in the US at 15:15 (GMT+3:00);ISM nonmanufacturing business activity in the US at 17:00 (GMT+3:00).

We also recommend paying attention to the speech by the Fed Chairman Powell.

by JustMarkets, 2018.10.03