Yesterday, world equity indices did not show any significant results and remained within the current price levels. Weak European currency supports some sectors of the European market, but this influence is still very weak. In general, players prefer not to take active actions and are in the expectation mode and in search of trading ideas. This evening, it is expected that US President Donald Trump will finally submit a plan for the long-suffering and long-promised tax reform; these expectations also provide US dollar with some support. So today at American session, we can expect an increase in buyers' activity on the US equity market and as a result increased volatility in FX market . In addition to these data, today the markets will analyze a large block of statistics on the American economy.
On Monday at FOREX American currency received more support after the "hawkish" rhetoric in the speech of the Fed chairman, Janet Yellen, which confirmed the expectations of market participants to continue the gradual increase in rates in the US. Besides Yellen stressed that for this it is not necessary to wait for inflation to rise up to the target 2%. Quite unexpected hawkish position, as a need to eliminate the risks of overheating the labor market, Yellen explained.
On Monday, the EUR/USD pair dropped significantly, and the large-scale decline continues today. This week the pair started under pressure, and the latest "hawkish" comments from the Fed leaders further contributed to the USD strengthening and sales of the main currency pair of the Forex market.
Yesterday gold resumed a decline and ended the day in the red. The price dynamics of the precious metal is still influenced by political and geopolitical factors, as well as numerous statements by representatives of the US Federal Reserve. We believe that the large-scale US dollar gain was the main reason for increased pressure on the gold market. Gold fell to the psychological level 1300 and lower to the 1286 area, where sellers' pressure should weaken.
Yesterday, the Brent oil market moved to consolidation in order to gain a foothold on the new levels achieved earlier. The API statistics showed a reduction in reserves of 0.7 million barrels. Today, the markets will expect official data from the US Department of Energy. The data can provide oil support if it matches the API data.