Dollar’s rate is decreasing for 0,11% on Forex based on the week data from the USA

On the 17th of October, the depreciation of the dollar before the start of the European session was 0.11%. Strong depreciation of the dollar against other major currencies happened yesterday at the beginning of the North American session after too weak statistical data in the USA. Retail sales came in worse than expected values, the manufacturing index fell in New York, and producer’s prices are reduced.

Recorded in the United States second case of disease of Ebola virus, along with disappointing the September American data and the ongoing conflicts in Iraq and Syria, contributed to active stock market sales.

More information about the events that contribute to the depreciation of the dollar, said the experts of the Forex Broker Company «FIBO-Group».

Economic news of the 15th of October

Retail sales in the United States fell by 0.3% in September, down 0.2% excluding auto sales, the Commerce Department said. Both figures came out worse than expected, and for the first time dropped from January. The annual decline was 5.0% in August to 4.3% in September. Decrease was observed in almost all categories. The only positive aspect was the growth of 3.4% in the electronics category, which was undoubtedly due to the sales of Apple's new iPhone 6.

Index Empire State, published by the New York Fed, declined to 6.17 in October, which was well below economists' expectations at 20.50. The September figure of 27.54 was the highest in 5 years, but a sharp and unexpected decline in new orders can be alarming. However, the employment rate has grown enormously and the subsequent 6-month forecast of employment remains optimistic.

US producer prices are reduced. Producer price index fell 0.1% in September, contrary to expectations, rising 0.1%. In September, prices increased by 1.6% year on year, compared with growth of 1.8% in August. Data base producer price index, excluding food and energy, have not changed, and the annual growth rate of 1.8%.

Inventories rose 0.2% in August, less than the 0.4% expected and the previous growth of 0.4% in June. The ratio of inventories to sales was unchanged at 1.29.

News from other countries were also not optimistic. Greek bonds continued to be sold. The cost of 10-year sovereign bonds of Greecedropping the third consecutive day, contributing to the growth of return to 8-month high of 8.01%. Italian and Spanish bond yields rose slightly, while the 10-year government bonds in the United States became less than 2% - the lowest level since mid-2013, against the backdrop of the redistribution of financial flows into safe-haven assets.

Annual ItalianGDP fell by 0.3% in the second quarter in the final reading, which was worse than the preliminary assessment of the decline of 0.2%.

Chinese consumer prices rose 0.5% in September and 1.6% for the year, compared with 2.0% the previous month and expectations of annual growth of 1.7%. Annual growth is the slowest in almost 5 years old and under state target level of 3.5%.

American stock market, closed reduction and continues a downward correction. Volume rose sharply as on the stock exchange NYSE, and on Nasdaq. The Nasdaq fell 2.6%, bouncing up from its minimum 4116 - a level at which it was traded in May. S & P500 also rose from the level of a local minimum, but closed down 0.8%. Decrease from the level of historical maximum was 9.8%. However, on the Nasdaqshares that rose in price exceeded the stocks that fell in price, in the ratio of 14 to 12. This suggests an emerging positive dynamics of the index, but the market remains under strong selling pressure.

The current stock market correction is likely to reflect the excitement of investors about the future of the weak growth in the United States and in Europe and Asia. In October ends the third program of quantitative easing from the Federal Reserve System, which is to buy a large amount of bonds to save the low cost of money. The next Fed meeting is scheduled for October 28-29. During the meeting, the policy will be to discuss interest rates.

On October 17, the key events of the day in the United States will:

- Data on industrial production in September. Economists expect the growth rate to 0.4% and capacity utilization to 79.0%;

- Index NAHB housing market in October. Forecast 59;

- Philadelphia Fed study in October.

The volatility of the dollar’s index yesterday exceeded 150 points on Forex.

Yesterday's weak American data contributed to the decline of the dollar index at the level of the local maximum near 86.10 to 84.52 near the local minimum. On October 17, the dollar index increases with the level near the local minimum of 84.82. According to experts of the Masterforex-V World Academy http://www.masterforex-v.com/, clabye European data expected today, could further contribute to the fastening of the dollar. Breakdown of the level of resistance near 85.39 will target the dollar index on the growth in the area of 85.82 on the blue arrow.

Alternative case scenario may be to reduce the value of the dollar to the level of support near 84.82 and further weakening in the district 84.52 on the green arrow.