Currency Majors Are Consolidating

During yesterday's trading session, the US dollar weakened slightly against a basket of major currencies. The US dollar index (#DX) closed in the negative zone (-0.15%). Investors' sentiment worsened after the collapse of the US stock market and the escalation of the trade war. The US dollar was under pressure due to weak economic data published yesterday. The core retail sales index fell to -0.1% in September, while experts expected 0.4%. The volume of retail sales rose by 0.1% and was worse than the expected value of +0.7%.

The British pound was under pressure after it became known that the UK and the EU could not reach an agreement on Brexit. Ireland-UK border is still an open issue. On Thursday, an important Brexit summit of EU leaders will begin, which is likely to give a solution on controversial issues.

Oil quotes are moderately declining. At the moment, futures for the WTI crude oil are testing a mark of $71.60 per barrel.

Market Indicators

Major US stock indices continue to show negative dynamics: #SPY (-0.56%), #DIA (-0.38%), #QQQ (-1.21%).

The 10-year US government bonds yield moved away from seven-year highs. At the moment, the indicator is at the level of 3.16-3.17%.

Economic calendar on 16.10.2018:

- Report on the labor market in the UK at 11:30 (GMT+3:00);
- German ZEW economic sentiment index at 12:00 (GMT+3:00);
- JOLTS job openings in the United States at 17:00 (GMT+3:00).

by JustForex, 2018.10.16

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.

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