Currency Majors Are Consolidating

The US dollar has not changed a lot against a basket of major currencies. The US dollar index (#DX) fell slightly and closed in the negative zone (0.06%). In general, demand for the US currency is still high. Investors took a waitandsee attitude before the publication of important statistics from the United States and the Central Bank meetings.

Donald Trump again criticized the Fed Chairman Jerome Powell for interest rates raising. The US President believes that high interest rates significantly harm its economic policy. Not for the first time, Trump has criticized the Fed.

The European Commission rejected the budget project of Italy for 2019 and demanded to submit a new modified project as soon as possible. Let us recall that the Italian government recently submitted a project for the next year, according to which the budget deficit counted to 2.4% of GDP, which significantly exceeds the limits set by the EU (0.8% of GDP).

The “black gold” prices are recovering after a sharp fall the day before. At the moment, futures for the WTI crude oil are testing a mark of $66.35 per barrel. At 17:30 (GMT+3:00), a report on the US crude oil inventories will be published.

Market Indicators

Yesterday, the bearish sentiment prevailed on the US stock market: #SPY (0.51%), #DIA (0.54%), #QQQ (0.37%).

The 10year US government bonds yield has been declining. At the moment, the indicator is at the level of 3.153.16%.

The index of economic activity in the manufacturing sector (PMI) of Germany at 10:30 (GMT+3:00);New home sales in the US at 17:00 (GMT+3:00);Bank of Canada interest rate decision at 17:00 (GMT+3:00);Fed’s “Beige Book” at 21:00 (GMT+3:00).

by JustMarkets, 2018.10.24