The US dollar strengthened slightly against a basket of currency majors. The dollar index closed yesterday's trading session in the green zone (+0.08%). The speech by Fed Chairman Powell supported the US currency. According to the official's speech to Congress, the economy is now on the right track and the Fed's monetary policy corresponds to current indicators.

The US currency is under pressure due to uncertainty in China-US trade relations. The parties still can't resolve some important issues. So, Beijing refuses to indicate the exact amount of agricultural goods in the agreement that it undertakes to buy. Earlier, US President Donald Trump announced that China intended to purchase agricultural products worth up to $50 billion a year to resolve the trade dispute. China is afraid that the agreement will be more beneficial for the US than for China, so the country does not want to be at a disadvantage. It is also unknown to what extent Washington will cancel previously imposed duties on Chinese goods.

Today, during the Asian trading session, weak economic data have been published in Japan and China. Thus, Japan's GDP (YoY) (Q3) grew only by 0.2% instead of the expected growth by 0.8%. Japan's GDP (q/q) (Q3) increased by 0.1% instead of 0.2%. Industrial production (YoY) grew by 4.7% in October instead of 5.4%.

The "black gold" prices have been growing. Currently, futures for the WTI crude oil are testing the $57.60 mark per barrel. At 18:00 (GMT+2:00), a report on US crude oil inventories will be published.

Market Indicators

Yesterday, there was the bullish sentiment in the US stock markets: SPY (+0.03%), DIA (+0.27%), QQQ (+0.02%).

The 10-year US government bonds yield has been declining. At the moment, the indicator is at the level of 1.84-1.85%.

• Retail sales in the UK at 11:30 (GMT+2:00);
• Initial jobless claims in the US at 15:30 (GMT+2:00);
• US producer price index at 15:30 (GMT+2:00).

We also recommend paying attention to the speeches by the head of the Fed and FOMC representatives.