The Policy Determines the Trend In the Market

Last week, the main currency pairs showed a variety of trends. It should be recalled that in October this year, the Fed plans to begin reducing assets on its balance sheet. The regulator published quite optimistic economic forecasts. The probability of tightening the monetary policy of the Federal Reserve System in December 2017 increased to 71.4%. At the same time, the US dollar lost its achievements quite quickly. This week there will be speeches by the FOMC representatives. If the majority of officials support another increase in the FRC interest rate keys this year, demand for the US currency could grow significantly.

At the moment, the euro and the New Zealand dollar are under pressure. Angela Merkel was re-elected for a fourth term. At the same time, the German chancellor’s block suffered significant losses in comparison with past results in 2013, which will cause difficulties in the formation of the coalition. None of the leading parties in New Zealand could get an absolute majority to form the government of the country.

At the moment, the “black gold” prices are stable. Futures for the WTI crude oil are being traded near $50.5 per barrel.

Market Indicators

On Friday, the major US stock indices showed mixed results: #SPY (+0.02%), #DIA (-0.12%), #QQQ (-0.10%).

At the moment, the 10-year US government bonds yield is at the level of 2.25-2.26%.

At 16:00 (GMT+3:00) the head of the ECB Draghi will give a speech.