On Friday, the US dollar strengthened against a basket of major currencies after the publication of strong labor market data for October. Thus, the number of people employed in the nonfarm sector increased to 250K instead of the forecasted value of 193K. The growth of average hourly earnings met market expectations and counted to 0.2% (m/m). The unemployment rate was 3.7%, as investors expected. The US dollar index (#DX) closed in the positive zone (+0.27%).

Also, the news that the United States and China could resume negotiations on ending the trade war between the countries affected investors’ sentiment. The US President, Donald Trump, met with the President of the People’s Republic of China, Xi Jinping, to discuss trade issues. The US President is positive and hopes that the conflict will soon be settled.

A number of events will take place this week that will affect the future alignment of forces on currency majors. So, tomorrow there will be elections of representatives to the US Congress. In addition, state and territory governors will be selected. Investors expect meetings of the central banks of Australia, New Zealand, and the US.

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The ‘black gold’ prices are falling. At the moment, futures for the WTI crude oil are testing a mark of $62.80 per barrel.

Market Indicators

On Friday, the main US stock indices closed in the negative zone: #SPY (-0.59%), #DIA (-0.50%), #QQQ (-1.56%).

At the moment, the 10-year US government bonds yield is at the level of 3.19-3.20%.

The news feed on 05.11.2018:

The index of economic activity in the UK services sector at 11:30 (GMT+2:00);

ISM non-manufacturing PMI at 17:00 (GMT+2:00).


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