The US dollar declined against most majors after yesterday’s Fed Chairman Jerome Powell’s speech, during which he stated that the current interest rate is below the level that can be considered neutral. The official also noted that, in general, the US economic outlook remains positive, however, the regulator needs time to assess the effects of the impact of the rate hike on the economy. Investors took such statements as a signal of a possible reduction in the rate hikes and began to sell the US currency actively. Macroeconomic events which could impact the USD today include data on initial jobless claims, personal income and spending (15:30 GMT+2), as well as the FOMC meeting minutes publication (21:00 GMT+2).

EUR/USD

The pair EUR/USD grew to 1.1384 due to the sales of USD. Today, investors expect the publication of data on unemployment level (10:55 GMT+2) and CPI in Germany (15:00 GMT+2). The Unemployment Level is expected to remain unchanged at 5.1% in November. CPI MoM is expected to remain unchanged at 0.2% and YoY it can go down to 2.4% in November from 2.5% a month earlier.

GBP/USD

Quotes of GBP/USD rose to 1.2837 due to the general weakening of USD. Investors continue to monitor the situation around Brexit. Parliamentary voting on a deal with the EU is scheduled for December 11. Today, market participants will pay attention to the publication of data on mortgage lending and mortgage approvals in the UK (11:30 GMT+2).

USD/JPY

Quotes of the USD/JPY pair amid “dovish” rhetoric of Fed Chairman Jerome Powell declined to the level of 113.00. Positive statistics from Japan published at night puts additional pressure on the instrument. Retail sales YoY grew to 3.5% in October from 2.2% a month earlier.

AUD/USD

Quotes of AUD/USD rose to 0.7324 during the Asian session. Published at night weak statistics from Australia was ignored by the market. HIA Home Sales went down to –0.8% in October from 1.1% in the previous month. The instrument is growing due to the general weakening of USD.

Gold

Gold exchange rate strengthened sharply and reached 1225.40 against the backdrop of declining of investor interest in USD.

Morning Market Review

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