The US Dollar Is in the Positive Zone Again

The US currency continued to strengthen against a basket of major currencies. The US dollar was supported by optimistic data on the ADP nonfarm employment change in October. The figure counted to 227K, while experts expected 189K. The US dollar index (#DX) closed in the positive zone (+0.11%). In the near future technical correction is not excluded.

Yesterday, economic reports from the Eurozone and Canada were also published. According to preliminary data from Eurostat, the Eurozone consumer price index rose in October to 2.2% (y/y) instead of the forecasted value of 2.1% (y/y). Canada GDP growth (m/m) counted to 0.1% in August, while investors expected the figure to be at the level of 0.0%. Today, during the Asian trading session, Caixin manufacturing PMI has been published in China, which counted to 50.1 instead of 49.9. Demand for the pound has grown significantly. According to The Times, London and Brussels reached a preliminary agreement in the field of financial services. The Bank of England meeting is in the focus of attention.

The “black gold” prices are consolidating after a sharp collapse during yesterday’s trading. At the moment, futures for the WTI crude oil are testing a mark of $65.00 per barrel.

Market Indicators

Yesterday, the main US stock indices closed in the positive zone: #SPY (+1.07%), #DIA (+1.00%), #QQQ (+2.35%).

At the moment, the 10year US government bonds yield is at the level of 3.153.16%.

The index of economic activity in the UK manufacturing sector at 11:30 (GMT+2:00);The Bank of England interest rate decision at 14:00 (GMT+2:00);ISM manufacturing PMI in the US at 16:00 (GMT+2:00).

by JustMarkets, 2018.11.01