The US Dollar Index Has Updated Weekly Highs

The US dollar strengthened significantly against a basket of major currencies after the publication of the FOMC meeting minutes. The dollar index (#DX) updated the weekly high and closed in the positive zone (+0.63%). Most Fed politicians support a further increase in interest rates. At the moment, more than 80% of financial market participants expect the Central Bank to raise the key interest rate at a meeting in December.

The British pound weakened strongly against the US currency after the publication of weak economic data in the UK. Thus, the consumer price index fell to 2.4% in September, while experts expected 2.6%. The pound is under pressure due to the uncertainty on the issue of Brexit. Meanwhile, the consumer price index in the Eurozone remained unchanged at 2.1% in September.

Today, during the Asian trading session, ambiguous data on the trade balance of Japan have been published. Australia reported that in September, the employment rate slowed down to 5.6K and was worse than the expected value of 15.2K. At the same time, the unemployment rate fell from 5.3% to 5.0%.

Oil quotes are declining amid the increase in crude oil inventories in the United States. At the moment, futures for the WTI crude oil are testing a mark of $69.60 per barrel.

Market Indicators

Major US stock indices show the variety of trends: #SPY (+0.02%), #DIA (0.37%), #QQQ (+0.04%).

At the moment, the 10year US government bonds yield is at the level of 3.193.20%.

Statistics on retail sales in the UK at 11:30 (GMT+3:00);Philadelphia Fed manufacturing index at 15:30 (GMT+3:00).

by JustMarkets, 2018.10.18