American futures point to some pressure on Wall Street equity assets on Monday due to the growth of US dollar. This week, the markets will be strongly influenced by the Fed's speakers. Last week, the major indices finished trading mixed, as investors were cautious amid continuing geopolitical tensions associated with North Korea. In addition to geopolitics, the week ended was saturated both in terms of information, as well as in terms of events and price movements. Market reaction to the "hawkish" position of the US Federal Reserve did not make the dollar a clear favorite, but still allowed it to complete last week stronger against all major rivals, except for the New Zealand dollar and the single European currency. The latter gained slightly against the "greenback", only 0.04%, but it was still stronger, in contrast, say, as Franc fell to Dollar by 1.16%. Last week ended with a decline in the price of gold.
Despite the continuing tensions around North Korea, which intensified after Kim Jong-un's response to the US president's speech at the UN, gold could not play back the losses suffered earlier. As a result, trading on September 18-22 closed under the previously broken resistance level of $1300.70 per troy ounce and below the important psychological and technical mark of 1300. The alliance of the CDU/CSU won the elections in Bundestag as expected with 33% of the votes. However, the "Christian Democrats" headed by Angela Merkel retained a majority in the parliament, lost some of their positions. Now the Merkel bloc of the CDU / CSU has 238 seats in the Bundestag, they still remain the main political party in Germany. Now Merkel will have to form a coalition with the liberal party and the "green". In general, Angela Merkel stressed the fulfillment of the main strategic task, still remained unsatisfied with the loss of part of the electorate. Thus, for the first time in Germany, three party government can be created.
This week, investors are likely to focus on finding additional drivers around monetary policy from the Fed, which announced last week that it would begin to reduce its balance in October. At the same time, a lot of data will be published this week, including statistics on durable goods and consumer spending.
The strengthening of the oil market continues. Brent oil tries to trade through the level of 57.30, but technically it is a tough overbought zone and strong medium-term resistance, so further growth without technical correction is unlikely. According news of the previous week, the number of drilling in the US dropped by 5 pcs - to 744 pcs. This week, traditional data on oil inventories are in focus, as well as market re-evaluation of OPEC comments.