USD continues to strengthen against most majors, with the exception of AUD. The index of the US dollar added 0.33% in one day. The weak data on the S&P/Case-Shiller Housing Price Index and the CB Consumer Confidence Index published yesterday could not have a noticeable impact on the instrument. S&P/CS HPI Composite went down to 5.1% in September from 5.5% in the previous month. CB Consumer Confidence dropped to 135.7 points in November from 137.9 points a month earlier. Today, investors will focus on data on GDP and Goods Trade Balance in the United States (15:30 GMT+2). GDP is expected to grow in quarterly terms to 3.6% in Q3 2018 from 3.5% in the previous quarter. Goods Trade Balance is expected to reduce to USD –76.70B in October from –76.25B a month earlier. The speech of Fed Chairman Jerome Powell is scheduled for 19:00 (GMT+2) today. In his speech, investors are hoping to hear about the intentions of the regulator regarding monetary policy.


The EUR/USD pair remains under pressure from the general strengthening of USD having dropped to 1.1290 during the Asian session. Investors continue monitoring the development of the situation around Italian budget. According to Italian media, the government can make concessions to Brussels and reduce the amount of public debt in the draft budget from 2.4% to 2.2%, as well as reduce government spending by EUR 3.6 billion. In this case, the Italian government will be able to avoid EU penalties, which, in turn, will positively affect investors' confidence in the European currency.


The GBP/USD pair continues to show a downward trend against the background of uncertainty regarding Brexit and the general strengthening of the US currency. During the Asian session, the pair quotes dropped to 1.2725. In general, the attention of investors is focused on Brexit. Prime Minister Theresa May needs to convince the British Parliament to vote in favor of her draft of a country's withdrawal from the EU. Voting on this issue is scheduled for December 11.


The pair USD/JPY continues to show a moderate positive trend and is approaching the level of 114.00. In the absence of macroeconomic releases from Japan, the movement of the instrument is taking place against the backdrop of the likelihood of Washington imposing new sanctions on Chinese exports. One of the main branches of the Japanese economy, the automotive sector, may suffer significantly from the further development of trade confrontation between the United States and China.


The AUD/USD pair rose to 0.7235 during the Asian session. Against the background of the absence of macroeconomic releases from Australia, the movement of the instrument's rate is of a technical nature.


Due to the general strengthening of USD, gold quotations decreased to 1213.20.

Morning Market Review

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