US Political Risks Continue to Influence the Dollar

The US dollar fell, as concerns about a possible cessation of the US government's work compensated for optimism about progress in the tax reform law. There were news that there is a possibility of termination of the work of the US government, if lawmakers can not reach a budget agreement this week. The government's funding expires on Friday.

The US trade deficit rose to a nine-month high in October due to rising oil prices and widening America's deficits with China and Mexico. The US 10 year yields could not exceed 2.4%, while the yield of two-year bonds reached its highest level since October 2008.

The Institute for Supply Management (ISM) said that its non-production index fell in November, which did not meet expectations of economists. The indicator decreased 57.4 points compared to 60.1 points in October.

Analysts predict that Friday's report on the labor market will reflect an increase in the number of employed in the non-agricultural sector in November by 200 thousand. The number of employed increased by 261 thousand in October. Meanwhile, the unemployment rate, according to expectations, remained unchanged in November, at 4.1%.