The US Dollar Is in the Positive Zone. Investors Expect the Decision of the EU on Brexit

Yesterday, the US dollar strengthened against a basket of currency majors. The dollar index (#DX) closed yesterday's trading session in the green zone (+0.17%). Investors are focused on statements by US President Donald Trump. Trump criticized the Fed again for too high interest rate. "Take a look around the World at our competitors. Germany and others are actually GETTING PAID to borrow money. Fed was way too fast to raise, and way too slow to cut!" Trump tweeted.

Mario Draghi held his last meeting as head of the ECB yesterday. Finally, he reminded investors of gloomy economic prospects, and also said that low interest rates would remain for a long time. On November 1, Christine Lagarde will become a head of ECB instead of Mario Draghi.

The British pound is still under pressure due to the uncertainty concerning Brexit. Today, EU leaders will gather to decide whether to extend Britain’s exit from the bloc or not. It is known that most countries support the initiative to postpone Brexit for three months, except France. Meanwhile, Leader of the House of Commons of United Kingdom, Jacob Rees-Mogg, said that the government did not want to postpone Brexit and intended to do so on October 31, as planned.

The "black gold" prices are consolidating. At the moment, futures for the WTI crude oil are testing the $56.15 per barrel mark. At 20:00 (GMT+3:00) US Baker Hughes rig count will be published.

Market Indicators

Yesterday, there was a variety of trends in the US stock markets: #SPY (+0.16%), #DIA (-0.10%), #QQQ (+0.97%).

The 10-year US government bonds yield is still at 1.75-1.76%.

• - German IFO business climate index at 11:10 (GMT+3:00);
• - Michigan consumer sentiment and expectations at 17:00 (GMT+3:00).

by JustMarkets, 2019.10.25

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.