USDX was declining for the 6th consecutive week

Last week, the US market dynamics did not change. The dollar index was declining for the 6th week in a row. Stock prices rose for the 4th consecutive week, with an increase in major stock indices exceeding 2%. The earnings reports of the US corporations for the 4th quarter of the last year had a strong impact on the stock market. On Monday, some positive dynamics appeared, when the US Senate approved the extension of government funding until February 8 of this year. Note that this positive news did not affect the currency market at all - the US dollar index declined till Thursday. The main reason for this was investors’ concerns that Trump’s new economic policy - America first will depend on the "weakening of the dollar".

On Tuesday, stock indices continued to grow due to an increase in the number of Netflix subscribers. The stocks of this company advanced by 9%, pulling up the stock prices of Facebook, Apple, Amazon and Google. The dollar index fell after the assignment of Jerome Powell as the new Fed president by the US Senate.

On Wednesday, the growth of the US stock market stopped because of the statement by the US Secretary of Commerce Wilbur Ross on a possible trade war with China. The reason for this may be the violations of the US intellectual property rights. US Treasury Secretary Steven Mnuchin positively assessed the US dollar weakening for the economy, after which the US dollar noticeably slumped.

On Thursday, the change in stock prices was minimal. Many investors are concerned about the fact that the S&P 500 is growing and has been traded without a 5% correction for 396 days. This is the longest, uninterrupted growth in its entire history. On Thursday, the US dollar index updated its 3-year low on the background of the ECB President Mario Draghi's statement that the ECB was not going to conduct currency interventions and stop the euro growth. The US President Donald Trump said in an interview that he would like the dollar to strengthen. Trump also added that US Treasury Secretary Stephen Mnuchin’s view about the benefits of the "weaker dollar" was misinterpreted.

On Friday, the stock indices showed an impressive growth amid good corporate earnings reports. Currently, the majority of market participants are expecting the growth of the total profit of the S&P 500 companies by 13.2% in the fourth quarter of 2017. At the beginning of the reporting season, the growth forecast was 12%.