Demand for the US dollar Remains at a High Level

Last week, the US dollar rose against the major currencies. Support was provided by optimistic economic reports and growth in the US government bonds yield. Prospects for tax overhaul also support the demand for US currency. The US Senate approved a draft budget for 2018, which will allow Republicans to carry out reform without the support of Democrats. At the moment, the probability of increasing the range of the Fed’s key interest rate in December 2017 exceeds 90%.

On Friday, the Canadian dollar weakened sharply against the US dollar. The growth of USD/CAD quotations exceeded 150 points. This is due to the release of weak economic reports. In September, the consumer price index was 0.2%, which is less than the forecasted value of 0.3%. In August, retail sales in Canada declined by 0.3%. Experts expected the growth rate of 0.5%.

On Sunday, parliamentary elections took place in Japan. The Prime Minister Shinzo Abe’s ruling coalition confidently won elections. Japan will adhere to stimulating the monetary policy.

Prices of “black gold” continue to show positive dynamics. Support is provided by a reduction in drilling activity in the United States. At the moment, futures for the WTI crude oil are being traded above $52 per barrel.

Market Indicators

On Friday, the major US stock indexes again updated historical highs. SPY (SPDR S&P 500 ETF) closed at $257.11 (+0.52%).

At the moment, the 10year US government bonds yield is testing local highs. The indicator is at the level of 2.382.39%.

The index of industrial orders in the UK at 13:00 (GMT+3:00);The volume of wholesale sales in Canada at 15:30 (GMT+3:00).

by JustMarkets, 2017.10.23