In the last working day of the year oil prices are again approaching a maximum of 2.5 years after the release of crude oil inventories data, while demand for the dollar falls. All basic quotations show a weakening in the reserve currency and the US dollar index continues to fall for the second week. However, the decreasing dollar helped to boost American stock indices and thus the S&P 500 and Dow Jones added 0.3% and 0.2%, respectively. Rising oil and metal prices supported the commodity currencies and thus the Canadian and Australian dollar traded near 2-month highs. Also, investors are optimistic about the euro, despite new parliamentary elections in Italy, as the markets have already played this event. Another thing that contributes to the strengthening of the single currency is the expectation for changes in the ECB's monetary policy in 2018. Today is expected recent economic data for this year, but trading volumes have dropped significantly and the market is not very volatile.
SuperForex wishes you a Happy New Year and all the best in 2018!
