The US Dollar Collapsed. Volatility has Grown Significantly

Yesterday, high trading activity and volatility were observed in the foreign exchange market. The US dollar weakened sharply against the major currencies. The dollar index (#DX) closed the trading session in the negative zone (-0.71%). The biggest growth was shown by the EUR/USD currency pair. The euro was supported by positive data on German GDP. The Office for National Statistics reported that in October the consumer price index was 3.0% (year-on-year), which is less than the forecasted value of 3.1%.

Today, the news background will be very eventful. Japan reported that in the third quarter the country’s economic growth slowed from 0.6% to 0.3%. The attention of participants of the financial markets is focused on the economic reports from the UK and the US. We also recommend paying attention to the dynamics of the US government bonds yield.

At the moment, bearish sentiment prevails in the market of “black gold”. Futures for the WTI crude oil are being traded near $55 per barrel. The International Energy Agency lowered the forecast for oil demand. The American Petroleum Institute reported on a significant increase in crude oil reserves in a week that ended on November 10.

Market Indicators

Yesterday, the major US stock indices closed in the negative zone: #SPY (-0.23%), #DIA (-0.16%), #QQQ (-0.36%).

The 10-year US government bonds yield demonstrates negative dynamics. At the moment the indicator is at the level of 2.35-2.36%.