The US currency shows positive dynamics. On Friday, the US dollar index (#DX) closed in the positive zone (+0.23%). The US currency is supported by the differential of interest rates, as well as optimistic economic reports. Financial market participants expect a report on the US labor market for September.
As it became known, Canada agreed to join the trade agreement with the US and Mexico. The new agreement will be called the US-Mexico-Canada Agreement (USMCA) and will replace the North American Free Trade Agreement (NAFTA).
The euro is declining against the US dollar due to concerns regarding Italy. On Friday, Italy submitted a budget for the next year, which foresaw a deficit of 2.4% of GDP. This indicator of a deficit is three times higher than the previous directions of Italy’s government. The British pound also weakened against the US dollar after the publication of a weak report on UK GDP. GDP (y/y) fell to 1.2% in the second quarter, while experts expected 1.3%. GDP (q/q) counted to 0.4%, as investors expected.
The “black gold” prices are growing. At the moment, futures for the WTI crude oil are testing a mark of $73.40 per barrel.
Market Indicators
On Friday, there was a variety of trends in the US stock market: #SPY (+0.01%), #DIA (+0.06%), #QQQ (-0.02%).
At the moment, the 10-year US government bonds yield is at the level of 3.05-3.06%.
The news feed on 2018.10.01:
The index of economic activity in the manufacturing sector of Germany at 10:55 (GMT+3:00);
The index of economic activity in the manufacturing sector of the UK at 11:30 (GMT+3:00);
The index of economic activity in the manufacturing sector of the US from ISM at 17:00 (GMT+3:00).
