In the Asian session, the dollar traded mixed against major currencies.
From the start of trading, the dollar fell sharply as investors worried that the plan of the President of Donald trump on the revision of the tax can be repealed. Soon, however, the us currency regained lost ground.
The mood of investors was affected by the speech of the head of the Federal reserve Bank of Dallas Robert Kaplan, who said he was ready to discuss the withdrawal of monetary stimulus and will monitor progress in relation to the US labor market. “We can afford to be patient about raising rates because economic growth won’t be anywhere”. – said Kaplan.- “I believe that if it’s too long to wait for signs of inflation, then we will have to raise interest rates more rapidly. In this case, the probability of a recession in the US economy will grow.”
Despite the fact that the number of jobs outside of agriculture in September for the first time in seven years decreased by 33 000, Kaplan believes that the economy moves to full employment.
“The fed’s forecast for GDP growth of USA in 2017 is 2.25%, which is relatively low compared with previous periods of economic growth, but this should be enough to improve the situation on the labor market”, – said the head of the Federal reserve Bank of Dallas. – “Inflationary pressure is increasing, however, this process hinders the emergence of innovations that change the ratio of the values of the market and globalization”.
Robert Kaplan, in the course of today’s speech also noted that the greatest threat to the U.S. economy – slow growth, which is reflected in the decrease in the yield on 10-year Treasury bonds. He also added that the United States can boost economic growth through immigration, teaching migrants to new skills.
From the start of trading significant support to the Australian dollar had data on consumer confidence in Australia. According to the results of a survey conducted by Westpac Bank, the trust of consumers in Australia in October improved by 3.6% to 101.4, following a 2.5% increase in September to 97.9 points.
The Westpac report noted that consumer confidence in October was the highest this year for the first time exceeding the value of 100, which separates optimists from pessimists. The increase in consumer confidence observed on the background of successive reports on the improvement of the world economy .
Information-analytical Department Forex club