The dollar index was slightly corrected downward yesterday | IFCM
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The dollar index was slightly corrected downward yesterday - 17.1.2014

Yesterday, the dollar index (USDIDX) was slightly corrected downward. The principle of "the worse, the better", which we mentioned in the previous report did not work out. All the U.S. macroeconomic data were positive. Because of this, some market participants have decided that there will be no increase in interest rates for the near future. As it is known, the Fed will conceder this issue in case the annual inflation exceeds 2%. According to the data for December, the growth in consumer prices was 1.5%. We believe that the strengthening of the economy increases the likelihood of reducing the program of purchasing the U.S. government bonds by $ 10 billion at the next FOMC meeting on 28-29 January. Accordingly, we expect that the dollar index will keep the uptrend.

USDIDX, Daily

Today, the U.S. wwe expect the next block of macroeconomic information that may influence the dollar. At 13-30 GMT (0), we will find out about the real estate market data for December. At 14-15 GMT (0), there are the industrial production index for December and 14-55 GMT (0) Michigan index of business activity in January coming out. In our opinion, the preliminary forecasts are mostly negative. Today we expect the statement of the Fed regional division chairman of Richmond. As it is expected, he would stape in favor of further reducing redemption of government bonds. This is a positive factor for the U.S. currency.

WHEAT, Daily

Weather anomalies can have a negative impact on the harvest of wheat (WHEAT) and corn (CORN). There are sharp jumps in temperature in the U.S. from 15 degrees Celsius to -15 lasting for a few days. According to the Munich Re, the authoritative German insurance company, there is a biggest flood since 1501 is expected in May and June in Germany. A similar situation may occur in the UK and China. As for Russia, by contrast, there is a drought expected, which also reduces harvest forecast. Last year, the wheat prices dropped by 24%, corn - by 36%. Many investors believe that the prices can rise at the beginning of this year. By the end of this week, the wheat price is able to demonstrate growth for the first time over the past 7 weeks. The USDA announced an increase in the volume of its exports by 41 % compared to the previous week. Egypt became the main buyer .

CORN, Weekly

The cost of corn this week dropped slightly due to the rejection of China to buy genetically modified corn in the United States. It should be noted that the Chinese authorities are studying this issue for two years. It is possible that soon the U.S. corn receive permission to be imported to China. In the meantime, the grain is delivered to Japan and South Korea.

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