Demand for the US Dollar Is Still High

The US currency strengthened against the basket of major currencies. The US dollar index (#DX) has reached a maximum in 2 weeks and closed in the positive zone (+0.20%). The American dollar is supported by improved US trade relations with international partners. So, last week a “friendly conversation” between the US President Donald Trump and the President of Turkey Recep Tayyip Erdogan, who participated in the annual meeting of the United Nations General Assembly, took place. It seems that relations between countries are getting better. Also, Donald Trump assesses the new agreement with Mexico and Canada as the best and most beneficial in the US history.

The British pound strengthened after it became known that the UK was ready to compromise in solving the problem with the Irish border. British Prime Minister Theresa May plans to sign an agreement on Brexit with the European Union. Britain intends to fully participate in the customs union with the EU. At the moment, the US dollar has recovered all the losses.

Today, during the Asian trading session, the decision on the interest rate of the Reserve Bank of Australia has been published. The indicator remained at the same level of 1.50%, as investors expected.

The “black gold” prices show positive dynamics. At the moment, futures for the WTI crude oil are testing a mark of $75.75 per barrel. At 23:30 (GMT+3:00) API weekly crude oil stock will be published.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.35%), #DIA (+0.88%), #QQQ (+0.20%).

At the moment, the 10year US government bonds yield is at the level of 3.063.07%.

The index of economic activity in the UK construction sector at 11:30 (GMT+3:00).

We also recommend paying attention to the speech by the Fed Chairman Powell.

by JustMarkets, 2018.10.02