Analysis of the American trading session

During the American session on Tuesday, November 14, 2017, the US dollar declined against most of the major market currencies. The US currency is under pressure of the continuing uncertainty about the timing of the implementation of the tax reform in the United States. Also, the pressure on the US dollar was provided by the decline in demand for risky assets and negative dynamics of world stock indices.

The single currency has grown significantly against the US dollar. Support for the euro is provided by positive data on Germany and the Eurozone.

• Preliminary data on Germany’s GDP indicated an increase of 0.8% in the third quarter, exceeding the previous value of 0.6%, on annualized basis growth of 2.3%, against the previous value of 1.0%.
• The growth in the GDP of the Eurozone remains unchanged and, on an annualized basis, remains significant at 2.5%.
• The index of economic sentiment by ZEW increased significantly and amounted to 30.9, against the previous value of 26.7.

The British pound also rose against the US dollar, restoring all lost ground in early trading Tuesday, amid weak data on inflation in the UK. See “Pound is under pressure: Inflation data on Great Britain.” The recovery of the British against the US dollar was facilitated by the general weakening of the US currency, as well as the correction of positions ahead of the publication of data on unemployment and wages in the UK.

Alexander Sivtsov