US dollar is strengthening against the majors. The growth of the instrument is taking place against the background of yesterday’s publication of statistics on the construction market in the USA. Housing Starts rose to 1.228M in October from 1.210M a month earlier. The number of building permits issued was better than expected and totaled 1.263M in October against 1.270M a month earlier (with the forecast of 1.260 million). Investors reacted to this news with active purchases of USD. Today, traders will pay attention to statistics from the United States in terms of durable goods orders and initial jobless claims for the week. It is expected that Durable Goods Orders will decrease to –2.2% in October from 0.7% a month earlier, and Core Durable Goods Orders may rise to 0.4% in October from 0.1% a month earlier. Initial Jobless Claims may decrease to 215K from 216K a week earlier according to the forecast.


The pair EUR/USD dropped to 1.1377 due to the strengthening USD. Due to the absence of macroeconomic releases, the movement of the pair's exchange rate will be affected by US statistics. Also, investors follow the situation with Brexit.


Quotes of the pair GBP/USD decreased to 1.2786 on the background of USD strengthening. Today, traders will pay attention to statistics on public sector net borrowings of Great Britain. The indicator is expected to grow to 5.350B pounds in October from 3.259B a month earlier. If the forecast proves right, the pound may fall under pressure. Investors continue monitoring the development of the situation around Brexit. Theresa May spoke to representatives of the Confederation of British Industry (CBI). She said that an agreement with the EU means overall economic success, zero tariffs, and extensive customs arrangements. CBI head, John Allen, said that the deal should take into account the results of the referendum, but limit the damage to the economies of Great Britain and the European Union. Generally, business supports the deal, but this is not enough to agree with it for the parliament, where Teresa May loses supporters.


The USD/JPY pair today rose to 112.90 during the Asian session. Weak statistics from Japan puts pressure on the yen. All Industries Activity Index went down to –0.9% in October from 0.4% a month earlier.


Quotations of AUD/USD corrected to the area of 0.7232 after the decrease to 0.7202. Positive support to the instrument is provided by positive statistics on the index of leading economic indicators from MI, which rose to 0.1% in October from 0.0% a month earlier. In general, despite a slight correction, the tendency for the pair to decrease remains.


Quotes of gold fell to the area of 1221.70 under the pressure of a strengthening dollar.

Morning Market Review

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