The US Dollar Is in the Positive Zone

Demand for the US currency is still high. Yesterday, the US dollar strengthened against a basket of major currencies. The dollar index (#DX) again updated the weekly high and closed in the positive zone (+0.44%). Positive economic reports and the prospects for the Fed interest rates raising support the US currency. In October, Philadelphia Fed manufacturing index counted to 22.2 and was better than the expected value of 19.7. Today, we expect important statistics from Canada and the United States.

The British pound weakened significantly against the US dollar due to weak economic statistics from the UK. The volume of retail sales in the UK fell by 0.8% in September. Experts expected a decline of 0.4%. Yesterday, the Brexit summit of EU leaders was held, during which no agreement was reached on the exit of the United Kingdom from the Union. However, British Prime Minister, Theresa May, is ready to consider the possibility of extending the transition period during which to adhere to the current EU rules.

Today, during the Asian trading session, weak data on the economy of China have been published. Thus, the GDP indicator (y/y) slowed down to 6.5%, while experts expected 6.6%. Industrial output increased by 5.8% in September, which is below market expectations at the level of 6.0%.

Oil quotes have become stable. At the moment, futures for the WTI crude oil are testing a mark of $68.80 per barrel.

Market Indicators

Major US stock indices show negative dynamics: #SPY (1.44%), #DIA (1.28%), #QQQ (2.32%).

At the moment, the 10year US government bonds yield is at the level of 3.173.18%.

Reports on inflation and retail sales in Canada at 15:30 (GMT+3:00);Existing home sales in the US at 17:00 (GMT+3:00).

We also recommend paying attention to the speech by the Bank of England governor Carney.

by JustMarkets, 2018.10.19