The Attention Is Focused on the ECB Press Conference

Yesterday there was a lot of important economic reports. Trades on the main currency pairs were very active. The dollar index (#DX) closed the trading session with a slight decrease (0.14%), despite the positive statistics from the US. In September, the volume of orders for durable goods increased by 2.2%, which is higher than the forecasted value of 1.0%. Sales of new housing increased by 18.9% to 667,000. Experts expected the decline of the index by 0.9% to 555,000.

The Bank of Canada, as expected, kept the key interest rate at the previous level of 1.00%. The regulator published quite optimistic forecasts for 2018. At the same time, the Central Bank announced that it will not hurry up with further interest rate increase. The Canadian dollar weakened against the US currency by more than 150 points.

The pound has significantly strengthened against the US dollar. The growth of the GBP/USD quotations exceeded 125 points. Support was provided by positive statistics on the country’s GDP. Preliminary data indicated that in the third quarter, the UK economy grew by 1.5% (year on year). Market expectations were at 1.4%.

Today, the key event will be the ECB meeting. It is expected that the Central Bank will disclose details of the asset purchases reduction program. We also recommend paying attention to the comments of the ECB representatives.

Market Indicators

Yesterday, the major US stock indices closed in the negative zone: #SPY (0.50%), #DIA (0.48%), #QQQ (0.38%).

The 10year US government bonds yield continues to show positive dynamics. At the moment the indicator is at the level of 2.432.44%.

At 14:45 (GMT+3:00) the ECB meeting will be held.

We also recommend paying attention to statistics from the USA:

The foreign goods trade balance at 15:30 (GMT+3:00);The number of initial jobless claims at 15:30 (GMT+3:00);The index of pending home sales at 17:00 (GMT+3:00).

by JustMarkets, 2017.10.26