Today We Expect High Volatility

The US dollar continues to strengthen relative to the major currencies. Yesterday, support was provided by the growth of the US government bonds yield and quite optimistic data on business activity indices. At the moment, the probability of the Fed’s interest rate increase in December this year exceeded 95%.

Today, the key event will be the meeting of the Bank of Canada. Most experts believe that the regulator will leave the interest rate at the previous level of 1.00%. We recommend you to pay attention to the comments and rhetoric of the Central Bank representatives.

In the Asian trading session, the Australian dollar fell sharply. The Australian Bureau of Statistics reported that in the third quarter, the consumer price index was 0.6%, which is less than the forecasted value of 0.8%. Since the beginning of this week, the EUR/USD currency pair has been consolidating. Investors took a waitandsee approach before the ECB meeting on October 26.

The oil quotes continue to show positive dynamics. Yesterday, futures for the WTI crude oil rose by more than 1%. Participants of the financial markets are expecting a report on crude oil inventories in the US at 17:30 (GMT+3:00).

Market Indicators

Yesterday, the major US stock indices closed in the positive zone: #SPY (+0.18%), #DIA (0.70%), #QQQ (+0.17%).

The 10year US government bonds yield exceeded the key mark of 2.40%.

The IFO business climate index at 11:00 (GMT+3:00);The preliminary data on UK GDP at 11:30 (GMT+3:00);The statistics on orders for durable goods in the US at 15:30 (GMT+3:00);A decision on the interest rate of the Bank of Canada at 17:00 (GMT+3:00);Sales of new housing in the US at 17:00 (GMT+3:00).

by JustMarkets, 2017.10.25