The Dollar Index Has Updated Local Lows. Demand for the British Pound Has Resumed Again

The US dollar weakened against a basket of major currencies. The dollar index (#DX) closed yesterday's trading session in the negative zone (-0.17%). Relations between the US and China have escalated again due to the situation in Hong Kong. US lawmakers supported the protest movement in Hong Kong, which Beijing did not like.

Investors are focused on the situation concerning Brexit. So, yesterday it became known that the UK and the European Union were close to concluding a draft agreement on Brexit. It is reported that the agreement will directly depend on whether British Prime Minister Boris Johnson receives support from the Democratic Unionist Party of Northern Ireland. Investors are also waiting for the summit of the UK and the EU, which will be held on Thursday-Friday. After the summit, the scenario of Brexit is likely to become a little clearer.

Mixed UK labor market data were also published yesterday. The average earnings + bonus increased by 3.8% in August, while experts expected growth by 4.0%. Initial jobless claims increased only by 21.1K in September instead of 26.5K. The unemployment rate rose to 3.9% in August instead of the forecasted value of 3.8%.

The "black gold" prices are consolidating. At the moment, futures for the WTI crude oil are testing the $52.70 mark per barrel.

Market Indicators

Yesterday, there was the bullish sentiment in the US stock markets: #SPY (+0.99%), #DIA (+0.88%), #QQQ (+1.27%).

The 10-year US government bonds yield has risen again. Currently, the indicator is at the level of 1.73-1.74%.

• - Consumer price index in the UK at 11:30 (GMT+3:00);
• - Consumer price index in the Eurozone at 12:00 (GMT+3:00);
• - Report on retail sales in the US at 15:30 (GMT+3:00);
• - Statistics on inflation in Canada at 15:30 (GMT+3:00);
• - Fed's "Beige Book" at 21:00 (GMT+3:00).

by JustMarkets, 2019.10.16

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.