Demand for the US Currency Has Been Resumed

Yesterday, the US dollar strengthened against the basket of world currencies. The dollar index (#DX) increased by 0.21%. Support for the US currency was provided by the positive economic reports and growth in the government bonds yield. There was information that US President Donald Trump was considering John Taylor, an economist at Stanford University, who was in favor of a more stringent monetary policy of the Fed, to take up a post of the Fed’s Chairman.

The National Statistical Office of Great Britain reported that in September consumer prices rose by 3.0% from 2.9% (year on year). The indicator has reached its maximum since April 2012. Earlier representatives of the Central Bank were concerned that wages in the country are growing more slowly than the level of inflation. Today, the attention is focused on the UK labor market report. In the near future, the Bank of England may delve into raising interest rates.

The oil quotes show a positive trend. At the moment, futures for the WTI oil are testing a mark of $52 per barrel. Investors expect a report on crude oil inventories in the US at 17:30 (GMT+3:00).

Market Indicators

Major US stock indexes continue to update historical highs. Yesterday #SPY (SPDR S&P 500 ETF) closed at $255.47 (+0.07%).

At the moment, the 10year US government bonds yield has moved away from local highs. The indicator is at the level of 2.302.31%.

A report on the UK labor market at 11:30 (GMT+3:00);A number of statistics on the real estate market in the US at 15:30 (GMT+3:00);The Fed’s “Beige Book” at 21:00 (GMT+3:00).

We also recommend you to pay attention to the speeches of the FOMC representatives.

by JustMarkets, 2017.10.18