During yesterday’s trading, the US dollar appreciated significantly in relation to the majors. The dollar index (#DX) increased by more than 1%. Support was provided by the growth of the US government bond yield and rumors about the new Fed’s chairman. At the moment, the main candidates for the post of the new Central Bank head are Jerome Powell and John Taylor, who prefer a more stringent monetary and credit policy. The House of Representatives of the US Congress adopted a budget plan for 2018, which will allow the implementation of Donald Trump’s tax reform without the support of Democrats. Details of the tax reform may appear next week.

The ECB, as expected, left interest rates at the same level. The regulator said that since January, the monthly volume of asset purchases will be reduced from 60 billion euros to 30 billion euros. At the same time, the program will be extended until the end of September 2018. The ECB remains concerned about the low level of inflation. The Central Bank also said that, if necessary, the volume of asset purchases can be increased again. These events put considerable pressure on the euro. The EUR/USD quotes fell by more than 175 points.

The bullish sentiment prevails on the oil market. At the moment, futures for the WTI crude oil are being traded near $52.6 per barrel. Investors expect data on drilling industry in the US at 17:00 (GMT).

Market Indicators

Yesterday, the major US stock indices showed mixed results: #SPY (+0.13%), #DIA (0.30%), #QQQ (-0.32%).

The 10-year US government bond yield continues to show positive dynamics. At the moment, the indicator is at the level of 2.46-2.47%.

The news background on 2017.10.27:

At 11:45 (GMT) the ECB press conference will be held.

Today, the report on the US GDP is at the center of attention at 12:30 (GMT).