The Dollar Index Has Risen. Demand Is Still High

Yesterday, the US dollar strengthened against the majors. The dollar index (#DX) closed the trading session in the positive zone (+0.23%). It should be recalled that at the weekend the US Senate approved a draft bill on tax reform. Demand for the American currency remains at a high level. A number of important statistical data on the US economy will be published in the current trading week. The key event will be a report on the labor market, which will appear on Friday, December 08. This may affect investors’ expectations about an increase in the Fed’s interest rate.

In the Asian trading session, aggressive purchases of AUD/USD were observed. The Reserve Bank of Australia, as expected, left the key interest rate at the previous level of 1.50%. The regulator expects improvement in the labor market situation. Additional support is provided by positive data on the volume of retail sales in Australia. In October, the indicator grew by 0.5%. Market expectations were at 0.3%.

The oil quotes continue to show negative dynamics. Yesterday, futures for the WTI crude oil fell by more than 1.2%. At the moment, the price is testing the mark of $57.25 per barrel.

Market Indicators

Major US stock indices showed a variety of trends: #SPY (0.12%), #DIA (+0.27%) and #QQQ (1.15%).

The 10year US government bonds yield has moved away from local extremes. At the moment, the indicator is at the level of 2.392.40%.

Statistics on business activity in the Eurozone at 11:00 (GMT+2:00);The index of business activity in the services sector of the UK at 11:30 (GMT+2:00);The index of business activity in the nonmanufacturing sector of the United States from ISM at 17:00 (GMT+2:00).

by JustMarkets, 2017.12.05