Yesterday, trades on the main currency pairs were very active. At the same time, a unidirectional trend was not observed. The dollar index (#DX) remained at the same level. The US continues to publish optimistic statistics. In October, the consumer confidence index increased by 4.4% to 125.9. Today investors' attention is focused on the Fed's meeting. It is expected that the regulator will keep the range of the key interest rate at the previous level of 1.00-1.25%. The regulator may indicate the time of the next interest rate hike. At the moment, the probability of tightening the Fed's monetary policy in December this year exceeds 95%.
The Canadian dollar continued to lose ground against the US dollar. The Statistics Canada released a weak GDP report. In August, the growth of the country's economy slowed by 0.1%. The head of the Bank of Canada Poloz reported that the regulator will not rush to further increase interest rates. The New Zealand dollar is supported by positive statistics on the labor market. In the third quarter, employment in New Zealand increased by 2.2%, which is higher than market expectations at 0.8%. The unemployment rate fell by 0.2% to 4.6%.
In the oil market, the bullish sentiment continues to prevail. Support is provided by the observance of the agreement on reducing oil production by the OPEC participants. At the moment, futures for the WTI crude oil are testing a mark of $54.75 per barrel.
Major US stock indices are near historical highs: #SPY (+0.16%), #DIA (+0.13%), #QQQ (+0.38%).
The 10-year US government bonds yield has begun to recover. At the moment, the indicator is at the level of 2.39-2.40%.
At 20:00 (GMT+2:00), the Fed will decide on the interest rate.
We recommend you to pay attention to the following economic reports:
- The index of business activity in the manufacturing sector of the UK at 11:30 (GMT+2:00);
- A preliminary report on the labor market in the US from ADP at 14:15 (GMT+2:00);
- The index of business activity in the manufacturing sector of the US from ISM at 16:00 (GMT+2:00).
We also recommend you to pay attention to the head of Bank of Canada Poloz's speech.
by 2017.11.01, We advise you to get acquainted with the daily forecasts for the major currency pairs.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.