USD is declining against EUR, JPY, and AUD but is strengthening against GBP. The ambiguous dynamics of the instrument is due to yesterday's mixed statistics from the US and news from Europe. US Retail Sales rose 0.8% in October from –0.1% a month earlier. This week, US Initial Jobless Claims index increased to 216K from 214K a week earlier.
As for the macroeconomic events that can affect the dollar rate today, it is worth noting statistics on industrial production and capacity utilization at 16:15 (GMT+2).
After news that four ministers immediately left the British cabinet in protest against the terms of the Brexit agreement, the EUR/USD pair fell to the level of 1.1300. However, by the end of the trading session, the instrument regained the losses and returned to the level of 1.1339. Today, investors are focused on EU inflation release. It is projected that in October the figure will remain at 2.2% YoY and drop to 0.2% MoM from 0.5% MoM a month earlier.
The GBP/USD pair fell to the level of 1.2796 due to Brexit news. Four British ministers, among them Brexit minister, Dominic Raab, and Esther McVey, minister of labor and pension, resigned. In his letter to Theresa May, Raab stated that he could not agree with the terms of the deal since they were violating the promises made by the Conservative Party to British citizens. The simultaneous resignation of so many ministers reduces the chances for the treaty to be ratified by the British Parliament. Representatives of the Scottish National Party have already said that the Prime Minister does not have a chance for the approval of the deal in its current state.
There is a lack of significant releases in the UK macroeconomic calendar today. Traders will focus on Brexit news.
The USD/JPY pair fell to the level of 113.28. Due to the lack of news in Japan, the movement of the instrument is influenced by technical factors.
AUD is moderately strengthening against USD. The instrument is supported by positive statistics on the labor market in Australia, against which the pair has risen to the level of 0.7278. In addition, the instrument is positively influenced by the comments of the Deputy Head of the RBA Guy Debelle, who noted that the Australian economy is currently less vulnerable due to the efforts of the regulator to decrease risky housing loans.
The dynamics of gold is moderately positive, during the Asian session, the instrument grew to the area of 1214.84.
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