The US Dollar Moved away from Local Highs

Since the beginning of this week, there has been a significant demand for the US dollar. The US currency received support after the decision of the Fed and expectations that Donald Trump’s administration will provide details of the tax reform. Yesterday, the US dollar weakened against the major leading currencies. The dollar index (#DX) closed the trading session in the negative zone (-0.24%). This movement was mostly caused by technical factors. Nevertheless, demand for the US currency remains at a fairly high level.

The United States published mixed statistics. The country’s GDP growth in the second quarter was revised to 3.1%. Market expectations were at 3.0%. At the same time, the number of initial applications for unemployment benefits last week increased by 12,000 to 272,000. Next week, a report on the US labor market for September will appear.

Today in the Asian trading session, mixed economic reports from Japan were published. In August, household expenditures increased by 0.6% (year on year), which is less than the forecasted value of 1.0%. At the same time, the national consumer price index rose from 0.2% to 0.7% (year on year).

At the moment, the oil quotes are consolidating. Futures for the WTI crude oil are being traded in the range of $51.4- $51.6 per barrel.

Market Indicators

Yesterday, the major US stock indices showed a variety of trends: #SPY (+0.12%), #DIA (+0.22%), #QQQ (-0.03%).

The 10-year US government bonds yield has moved away from the local extremes. At the moment, the indicator is at the level of 2.31-2.32%.

We recommend paying attention to the speeches of the heads of the ECB and the Bank of England.