The US dollar continues to strengthen against most currencies. In the near future we expect Donald Trump to nominate a new head of the Federal Reserve. The new approved budget for 2018, the year when a new tax reform may be adopted, fueled investor interest in the USD. The likelihood of the expected interest rate increase in December is up to about 90%. Against the background of these expectations the dollar was able to reach 3-month highs.
According to the results of the early parliamentary elections held yesterday in Japan were won by the ruling party and current prime minister Shinzo Abe, who has conducted and continues to conduct a soft monetary policy. By the beginning of the opening of trading the yen against the dollar continued its decline. The yen opened with a gap relative to other pairs.
In terms of the situation in Europe, the Catalan independence referendum continues to play an important role. Based on this background and mixed feelings on the European stock market, the euro continues to weaken.
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