Loonie Fell after the Bank of Canada Press Conference. Demand for the US Dollar Is Still High

During yesterday's trading, the US dollar continued to strengthen against the main currencies. The dollar index (#DX) closed the trading session in the positive zone (+0.21%). Demand for the American currency is still at a fairly high level. Additional support was provided by optimistic data on the labor market from ADP. Preliminary statistics indicate that in November the number of employed in the non-agricultural sector of the country increased by 190,000, which is higher than the market expectations of 185,000. We recommend you to keep track of current information on the tax reform in the United States.

The Bank of Canada, as expected, left the key interest rate at the previous level of 1.00%. Let's remind that this year the regulator raised interest rates twice. The Central Bank adheres to a cautious policy. In the near future, the Bank of Canada will keep the current rate of monetary policy.

The "black gold" prices show a negative trend. Yesterday there were aggressive sales. Futures for the WTI crude oil fell by more than 2.5%. At the moment, quotes are testing the mark of $56 per barrel.

Market Indicators

Yesterday, the major US stock indices showed a variety of trends: #SPY (+0.02%), #DIA (-0.16%) and #QQQ (0.45%).

The 10-year US government bonds yield began to recoup after a significant drop since the beginning of this week. At the moment, the indicator is at the level of 2.34-2.35%.

The news feed on 2017.12.07:

- The Eurozone GDP statistics at 12:00 (GMT+2:00);
- The number of initial jobless claims in the US at 15:30 (GMT+2:00);
- The index of business activity of Canada from Ivey at 17:00 (GMT+2:00).

We also recommend paying attention to the speech of the ECB Draghi head.

by JustForex, 2017.12.07

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.

GET FREE ANALYTICS

* required fields