USD is strengthening against its most major competitors, supported by Friday's positive statistics from the United States. According to the publication, in October, the Producer Price Index rose to 0.6% MoM from 0.2% MoM a month earlier. In addition, Fed’s Meeting Minutes affect the currency positively. The regulator notes positive trends in the American economy and maintains a course for a gradual increase in interest rates. As there is a lack of key US releases in the macroeconomic calendar today, the price movement will be influenced by technical factors.

EUR/USD

Under the pressure of the strengthening USD, the EUR/USD pair declined to the level of 1.1312. Also, EUR is negatively affected by the situation with the Italian budget. Contrary to the recommendations of the European Commission, the government refuses to correct the budget with a deficit of 2.4%. As a result, the official Brussels may impose sanctions on Italy.

GBP/USD

During the Asian session, the GBP/USD pair fell to the level of 1.2908. GBP is under pressure of a general strengthening of USD, as well as of negative Brexit news. EU representatives rejected Teresa May’s key proposal, and the issue with the border of Northern Ireland and related customs regulations still remains unresolved. May proposed to create a special “independent mechanism” to solve the “customs puzzle,” but the initiative was not supported by the EU.

USD/JPY

The USD/JPY pair rose to the level of 114.00 due to the strengthening of USD. As there is a lack of significant macroeconomic releases in Japan, JPY is moving under the influence of news from the United States.

AUD/USD

The AUD/USD pair fell to the level of 0.7209 under the pressure of the strengthening USD. As there is a lack of news from Australia, AUD is moving under the influence of US statistics.

Gold

Gold quotes are falling for the fourth consecutive trading session. During today's Asian session, the price tested the minimum at the level of 1207.06.

Morning Market Review

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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