The US Dollar Moved away from Local Highs Before the Release of Important Statistics

During yesterday's trading, the US currency moved away from the local highs. This movement was mostly caused by technical factors. Participants of the financial markets adopted a wait-and-see approach before publishing important economic reports. Today there will be preliminary statistics on the labor market from ADP and data on business activity in the non-manufacturing sector of the United States. Experts expect a slowdown in the growth in the number of people employed in the non-agricultural sector due to the aftermath of hurricanes Harvey and Irma. We recommend you to pay attention to the difference between the actual and forecasted values.

The UK continues to publish weak reports on business activity. In September, the index of business activity in the construction sector fell by 5.9% to 48.1. Market expectations were at the level of 51.0.

The oil quotes continued to decline after the publication of an ambiguous report on Crude Oil Inventories from the American Petroleum Institute (API). Prices for "black gold" fell by more than 1%. At the moment, futures for the WTI crude oil are being traded near $50.2 per barrel.

Market Indicators

In the US stock market, bullish sentiments continue to prevail. Yesterday #SPY (SPDR S&P 500 ETF) again updated its historic highs and closed at $252.86 (+0.21%).

The 10-year US government bonds yield has moved away from local highs. At the moment, the indicator is at the level of 2.31-2.32%.

News background on 2017.10.04:

- A number of statistics on business activity in the Eurozone at 11:00 (GMT+3:00);
- The index of business activity in the services sector of the UK at 11:30 (GMT+3:00);
- A preliminary report on the labor market in the US from ADP at 15:15 (GMT+3:00);
- The index of business activity in the non-manufacturing sector of the US from at 17:00 (GMT+3:00);
- Crude Oil Inventories in the US at 17:30 (GMT+3:00).

We recommend paying attention to the speeches of the head of the ECB Draghi and the Fed's chairman Yellen.

China's financial markets will be closed due to the holiday.

by JustForex, 2017.10.04

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.