The US currency continues to moderately strengthen against most majors, ignoring weak Friday data on personal income and spending in the US. In general, the positive effect of the Fed decision to raise the interest rate and confirm the regulator's commitment to the previous monetary policy continues to support the dollar.


The pair EUR/USD dropped to the area of 1.1596 against the backdrop of Friday data, which showed a slowdown in inflation in the euro area to 0.9% in September from 1.0% a month earlier. The new budget of Italy exerts additional pressure on the euro. The government of the country, contrary to the recommendations of the EU, approved the level of the budget deficit for the next three years at 2.4%. Today's macroeconomic releases, able to affect the instrument, include Markit Manufacturing PMI in euro area (10:00 GMT+2).


Quotes of the pair GBP/USD fell to the level of 1.3031 and consolidate near it during the Asian session against the backdrop of weak Friday data on the UK GDP. Today, investors will pay attention to statistics from the UK on Markit Manufacturing PMI, as well as data on the volume of mortgage approvals (10:30 GMT+2). It is expected that Markit Manufacturing PMI will fall to 52.5 points in September from 52.8 points a month earlier, and the number of mortgage approvals will decrease to 64,500K in August from 64,768K a month earlier. If the forecast proves right, the pair will fall under pressure.


Quotations of the pair USD/JPY continue to show positive dynamics. Tonight's statistics from Japan was weak, which put additional pressure on JPY. Tankan Large All Industry Capex dropped to 13.4% in Q3 from 13.6% in the previous quarter, and Tankan Large Manufacturing Index reduced to 19 points in Q3 2018 from 21 points in Q2. Against this background, the instrument reached the level of 113.95 during the Asian trade.


The rate of AUD/USD fell to 0.7208, ignoring the positive statistics on AiG Performance of Manufacturing Index. The indicator rose to 59.0 points in September from 56.7 points a month earlier. The main event for AUD this week will be the RBA's decision on the interest rate. It is expected to remain unchanged on the level of 1.50%. However, investors are more interested in the follow-up statement by the regulator. Traders hope to learn the RBA's plans for further monetary policy from the statement.


Quotes of gold after the active growth on Friday and testing the level of 1193.56 during the Asian session corrected to 1187.50.

Morning Market Review

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