US dollar rises moderately against the majority of its competitors. The strengthening of USD is taking place against the background of a new stage in the trade confrontation between the United States and China. According to Bloomberg, the US government is preparing to impose duties on the remaining Chinese imports, the amount of which is about USD 257B. The new duties will come into force if the November meeting of US President Donald Trump and Chinese President Xi Jinping at the G20 summit ends without result. In this case, the growth of Chinese GDP next year may slow down to 1.5% (this year the figure is expected to be higher than 6.0%). The macroeconomic releases that can affect the instrument today include statistics from the United States on ADP Nonfarm Employment Change. The indicator is expected to make up 189K in October against 230K a month earlier. The implementation of the forecast could put pressure on USD.


The EUR/USD pair fell to the level of 1.1337 amid weak euro area's GDP data. YoY, GDP of euro area fell to 1.7% in Q3 2018 from 2.2% in the previous quarter. In quarterly terms, GDP fell to 0.2% over the same period from 0.4% in the previous quarter. Today, investors will pay attention to the EU Consumer Price Index and Unemployment Level (12:00 GMT+2). It is expected that CPI will remain at the level of 2.1%, and Core CPI may increase from 0.9% to 1.0%. The unemployment rate, as predicted, will also remain unchanged at 8.1% in September.


Quotations of the pair GBP/USD fell to the level of 1.2711 due to the absence of macroeconomic releases from the UK. Today, the movement of the rate will be influenced by American news. The main macroeconomic release of the week for the pound will be tomorrow's publication of the decision of the Bank of England on the interest rate. Probably, in the conditions of preparation of the Brexit process, the regulator will not change the basic parameters of monetary policy and will take a wait-and-see attitude.


The USD/JPY pair today rose to 113.28 during the Asian session. The yen is under pressure from statistics from Japan, indicating a decline in industrial output to –1.1% in September from 0.2% a month earlier.


Quotes of the AUD/USD pair declined to the level of 0.7080 against the background of the publication of statistics on the CPI in Australia, according to which in annual terms the value of the indicator decreased to 1.9% in Q3 2018 as expected. In quarterly terms, the indicator value did not reach the forecast of 0.5% and remained unchanged at 0.4% in Q3 2018.


Gold quotes show a negative trend against the background of the general strengthening of USD and, during the Asian session, dropped to the area of 1218.75.

Morning Market Review

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