Brexit Agreement Is in the Spotlight

The US dollar weakened against a basket of major currencies. The dollar index (#DX) closed yesterday's trading session in the red zone (-0.40%). Mixed economic data from the US were published yesterday. Thus, building permits rose to 1.387M, while experts expected a value of 1.340M. However, the Philadelphia Fed manufacturing index counted to only 5.6 instead of the forecasted value of 7.3.

Markets are under pressure since today, the US authorities should announce the introduction of tariffs on more than 150 goods from the EU. Earlier, Washington also announced that from October 18, a 10% tariff on aircraft imported from the EU, as well as a 25% tariff on certain industrial and agricultural goods, would come into force.

The British pound rose significantly after British Prime Minister Boris Johnson and EU leaders agreed on a new Brexit deal. European Council President Donald Tusk said the agreement was now possible because both Ireland and the European Commission approved it. The agreement was reached thanks to Johnson's compromise proposals that will help to avoid customs checks between Ireland and Northern Ireland and guarantee the unity of the EU customs area. Now the project should be approved by the British Parliament. Voting is scheduled for Saturday, October 19.

The "black gold" prices show positive dynamics. Currently, futures for the WTI crude oil are testing the $54.20 mark per barrel.

Market Indicators

Yesterday, there was the bullish sentiment in the US stock markets: #SPY (+0.29%), #DIA (+0.11%), #QQQ (+0.26%).

The 10-year US government bonds yield has risen again. At the moment, the indicator is at the level of 1.75-1.76%.

• Today, the publication of important news is not expected. We recommend paying attention to the speech by the Bank of England Governor Carney and the FOMC representatives.

by JMarkets, 2019.10.18

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.