Analysis of the American trading session

During the American session on Thursday, October 19, 2017, the US dollar slightly strengthened its positions against most of the major market currencies, after a decline in the European session. Some support for the US dollar was provided by positive statistics on applications for unemployment and increased production activity from the FBI Philadelphia.

• The number of initial applications for unemployment benefits was 222K, which is lower than the previous value at the level of 244K.
• The index of manufacturing activity from the Federal Reserve Bank of Philadelphia in October rose to 27.9, exceeding the September values at 23.8.

The euro continued to strengthen its positions against the US dollar during the American session, which was caused by a decline in global stock exchanges, as well as news from Catalonia. The government of Spain announced on Thursday that it will limit the rights of Catalonia, using Article 155 of the Constitution. It will limit the powers of the authorities of the region.

The British pound continued trading under pressure during the US trading. The main pressure on the pound is caused by flat data on retail sales in the UK. See https://esterholdings.com/en/2017/10/19/the-pound-is-under-pressure/.

There is also an additional pressure on the pound because of the uncertain situation regarding Brexit. There is still a stalemate between London and Brussels in the negotiation process regarding financial compensation from the UK.

Alexander Sivtsov