The US dollar is strengthening against most majors, with the exception of the yen. Published on Wednesday, data from the United States were generally negative, but could not put pressure on the instrument. Initial jobless claims grew to 210K from 215K previous week. Durable Goods Orders decreased to 0.1% in September from 0.3% a month earlier. Goods Trade Balance reduced to USD –76.04B in September from –75.46B a month earlier. Today, investors are waiting for data on the US GDP. The indicator is expected to decline to 3.3% in Q3 2018 from 4.2% in the previous quarter. If the forecast proves right, USD may fall under pressure.
Due to the strengthening of USD, the pair EUR/USD decreased to 1.1362, near which it is consolidating during the Asian session. Today, investors will pay attention to the speech of the ECB Head Mario Draghi, during which investors are unlikely to hear something new, but a surge in volatility in the instrument cannot be ruled out.
During yesterday’s press conference following the ECB meeting, Mario Draghi noted that increased protectionism and volatility in the financial market pose a risk for the recovery of the eurozone, and higher wages in the labor market will contribute to inflation. Interest rates remained at current levels, and the program of purchases of bonds in the amount of EUR 15B will be extended until December.
The GBP/USD pair has changed insignificantly and is consolidating at 1.2817 during the Asian session. Due to the absence of significant macroeconomic releases in the UK, the movement of the instrument is technical.
The pair USD/JPY fell to 112.10 during Asian trading. Some support for the yen is provided by data on Tokyo CPI, which rose to 1.5% YoY in October from 1.3% a month earlier. Traders are following Japanese Prime Minister Shinzo Abe's visit to Beijing. Following the meeting, the parties are expected to sign a number of business agreements.
The AUD/USD pair fell under the pressure of the strengthening US currency to the area of 0.7034. As there is lack of key economic releases, AUD is traded under the influence of technical factors. In general, AUD continues to be under pressure from the development of a trade war between the US and China, Australia’s largest trading partners. According to experts, the conflict escalation may cause damage to the Australian economy in the form of a 0.3% reduction in GDP by 2022.
Gold quotations rose to 1233.00 during Asian session.
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