The Dollar Weakened After the Publication of the FOMC Protocols

Yesterday, the US dollar weakened again against the majors. The dollar index (#DX) closed the trading session in the negative zone (0.33%). Most Fed’s representatives believe that another increase in the key interest rate this year will be appropriate. The growth of wages will stimulate inflation. At the same time, the regulator is concerned about the low level of consumer prices. Some Fed’s officials believe that the increase in interest rates will need to be reduced if inflation does not approach the target level. After the publication of the FOMC protocols, the US dollar continued to lose ground. The probability of tightening the Fed’s monetary policy in December 2017 fell to 81.7%.

The growing geopolitical risks between the US and North Korea are putting additional pressure on the US currency. We recommend you to keep track of current information on the situation on the Korean peninsula. Today, investors’ attention will be focused on economic reports from the US and the speech of ECB head Mario Draghi.

At the moment, the oil quotes are consolidating. Futures for the WTI crude oil are being traded in the range of $50.7551.25 per barrel. Participants of the financial markets expect statistics on crude oil inventories in the US at 18:00 (GMT+3:00).

Market Indicators

Major US stock indexes continue to update historical highs: #SPY (+0.16%), #DIA (+0.15%), #QQQ (+0.30%).

The 10year US government bonds yield shows negative dynamics. At the moment the indicator is at the level of 2.33%.

The producer price index in the US at 15:30 (GMT+3:00);The number of initial applications for unemployment benefits in the US at 15:30 (GMT+3:00).

At 17:30 (GMT+3:00) the ECB head Draghi will give a speech.

by JustMarkets, 2017.10.12