During yesterday's trading, Canadian and New Zealand dollars weakened sharply against the US currency. The Reserve Bank of New Zealand, as expected, left the key interest rate at the previous level of 1.75%. The regulator plans to adhere to the current rate of the monetary policy. The central bank also said that the depreciation of the New Zealand dollar will contribute to stable economic growth. The head of the Bank of Canada, Stephen Poloz, said that the regulator will not hurry up with a further increase in the interest rate. The Central Bank is concerned about the significant strengthening of the Canadian dollar since the beginning of this year. During this period the USD/CAD quotes fell by more than 7%.
Some Fed's representatives believe that current interest rates are appropriate in conditions of weak inflation. The US continues to publish mixed economic reports. In August, the volume of orders for durable goods increased by 1.7%. Market expectations were at 1.0%. At the same time, the index of pending sales in the real estate market fell by 2.6%.
Prices for "black gold" continue to consolidate. At the moment, futures for the WTI crude oil are traded near $52.5 per barrel.
Market Indicators
Yesterday the bullish sentiment prevailed on the US stock market. The main indices closed in the positive zone: SPDR S&P 500 (NYSE:SPY) (0.39%), SPDR Dow Jones Industrial Average (NYSE:DIA) (0.19%), PowerShares QQQ Trust Series 1 (NASDAQ:QQQ) (0.90%).
The 10-year US government bonds yield has grown significantly. At the moment the indicator is at the level of 2.35%.
The dollar index (#DX) closed the trading session in the positive zone (+0.42%).
We recommend you to pay attention to economic reports from the USA:
- The GDP data at 15:30 (GMT+3:00);
- The balance of foreign trade in goods at 15:30 (GMT+3:00);
- The number of initial applications for unemployment benefits at 15:30 (GMT+3:00).
At 11:15 (GMT+3:00) the head of the Bank of England Carney will hold a press conference. The FOMC representative George and Fisher will give speeches at 16:45 (GMT+3:00) and 17:15 (GMT+3:00) respectively.