Currency Majors Are Consolidating

Since the beginning of this week, the US dollar has lost its positions relative to the majors. For this period, the dollar index (#DX) fell by more than 0.75%. Yesterday, quite optimistic statistics on the US economy were published. In September, the producer price index increased from 0.2% to 0.4%. The indicator justified market expectations. Over the past week, the number of initial applications for unemployment benefits decreased by 5.8% to 243,000. At the same time, these reports did not significantly support the US currency.

Today investors’ attention is focused on reports on inflation and retail sales in the US. According to the FOMC protocols, some officials are concerned about the low level of inflation in the country. If the statistics turns out to be positive, demand for the US dollar could significantly increase. At the moment, the main currency pairs are consolidating.

In the Asian trading session, the bullish sentiment prevails in the market of “black gold”. At the moment, futures for the WTI oil are testing a mark of $51 per barrel. We recommend paying attention to the data on the number of drilling rigs from Baker Hughes at 20:00 (GMT+3:00).

Market Indicators

Yesterday, the major US stock indices slightly moved away from historical highs: #SPY (0.15%), #DIA (0.12%), #QQQ (0.18%).

The last trading session, the 10year US government bonds yield shows a negative trend. At the moment, the indicator is at the level of 2.32%.

The basic consumer price index at 15:30 (GMT+3:00);Statistics on retail sales at 15:30 (GMT+3:00);Indices of consumers expectations and sentiments from the University of Michigan at 17:00 (GMT+3:00).

by JustMarkets, 2017.10.13