Demand for the US Dollar Has Grown Significantly

During yesterday’s trading, the US dollar strengthened against the basket of world currencies. The dollar index (#DX) closed the trading session in the positive zone (+0.51%). President of the Federal Reserve Bank of New York William Dudley said that the US economy is stable and the Fed can consider another increase in the interest rate this year. At the moment, the probability of tightening the Fed’s monetary policy in December 2017 exceeds 70%. At the same time, geopolitical risks on the Korean peninsula have once again worsened, which has led to an increase in the demand for safe assets.

Then financial markets participants continue to assess the results of the elections in Germany and New Zealand. Additional pressure on the euro is provided by weak statistics on the IFO business climate index for Germany. In September, the indicator fell from 115.9 to 115.2. Market expectations were at 116.00.

Yesterday aggressive purchases were observed in the “black gold” market. Futures for the WTI crude oil rose by more than 2.5%. At the moment, the oil quotes have overcome the $52 mark for a barrel.

Market Indicators

Major US stock indices closed in the negative zone: #SPY (-0.20%), #DIA (-0.17%), #QQQ (-1.05%).

The 10-year US government bonds yield has moved away from local highs. At the moment the indicator is at the level of 2.22-2.23%.

At 19:45 (GMT+3:00), the Fed’s Chairman Yellen will hold a press conference.