US dollar index renews 16-month high - 17.11.2021

Today, the US dollar index is growing for the third day in a row. The US dollar has renewed its maximum in 16 months. The American currency is strengthening against the backdrop of rising inflation in October to 6.2% in annual terms. This is the highest level since 1990. Investors are confident that the Fed will raise rates next year to contain consumer prices. The head of the European Central Bank (ECB) Christine Lagarde said that the tightening of monetary policy could slow down economic growth in the Eurozone. This contributed to the strong weakening of the euro. Let's remind that the GDP of the Eurozone in the 3rd quarter grew by 3.7% in annual terms. The British pound strengthened thanks to good data on the labor market and the decline in unemployment in Britain in September to the lowest since June 2020 at 4.3%. Important inflation data for October are due out today in the Eurozone, Britain and Canada. Building Permits and Housing Starts are to be released in the United States and are expected to speak from the Fed. The price of bitcoin dropped below the psychological level of $ 60,000, as investors fear tightening control over cryptocurrency trading in the United States. The United States Securities and Exchange Commission has extended the consideration of the launch of new bitcoin ETF funds. Remember that the first ETF ProShares Bitcoin Strategy quickly gained a capitalization of $1 billion. Now many other funds and companies want to repeat its success. 

Yesterday, US stock indices rose on strong economic performance. Retail sales (+ 1.7%) and industrial production (+ 1.6%) exceeded forecasts in October. Against this background, shares of American retail chains Home Depot (+ 5.7%), Lowe's (+ 4.2%) and Target Corporation (+ 1.1%) rose in price. Qualcomm shares rose nearly 8% on news of the delivery of its Snapdragon processors to the German car manufacturer BMW. Advanced Micro Devices Inc, another processor manufacturer, added 4%. The American premium electric vehicle manufacturer Lucid Group has announced an increase in orders for 2022. Its shares soared 23.7%. This also supported Tesla quotes (+ 4%) above the psychological $1000 mark.

Today oil is getting a little cheaper on the world market. Nevertheless, Brent is trading above the psychological support level of $80 per barrel. The independent American Petroleum Institute announced an increase in oil reserves in the United States for the week by 655 thousand barrels. This is less than expected (+1.4 million). The US authorities are considering using the Strategic Petroleum Reserve to lower domestic gasoline prices. This could be a negative factor for oil prices. The cost of gasoline in the United States reached a 7-year high and approached $ 1 per liter. The International Energy Agency (IEA) raised its forecast for the average price of Brent in 2022 to $79.4 per barrel from the previous estimate of $76.8.