USD is declining against most majors during the Asian session. By the end of the previous trading week, USD strengthened against the backdrop of positive investor expectations from the meeting of the heads of the United States and China. It became known that during the two-hour negotiations, Donald Trump and Xi Jinping agreed not to introduce new reciprocal trade duties. The United States will suspend the decision to raise duties from 10% to 25% for 90 days. At the same time, Washington reserves the right to increase tariffs after 90 days, if Beijing does not comply with the terms of the agreement. China, in turn, will purchase "very significant" quantity of goods from the United States. It is expected that such measures can correct the situation with the trade imbalance between the two states. After active growth last week, the observed decline in the dollar is technical in nature.
The EUR/USD pair rose to 1.1348 during the Asian session due to the correction of USD. Today's macroeconomic releases, able to affect the instrument, include Manufacturing PMI in euro area (11:00 GMT+2). The indicator is expected to remain unchanged on the level of 51.5 points in November.
The GBP/USD pair grew to the level of 1.2775. Today, traders expect the publication of the UK's Manufacturing PMI (11:30 GMT+2). The indicator is expected to grow to 51.6 points in November from 51.1 points a month earlier. If the forecast proves correct, it can support the instrument. Investors continue monitoring the development of the situation around Brexit. A little more than a week is left before the parliamentary vote on the draft of the country's withdrawal from the EU. During this time, Prime Minister Theresa May will try to convince as many MPs as possible of the need to approve the Brexit deal.
The pair USD/JPY dropped to 113.47 due to the weakened USD. The positive statistics from Japan, published tonight, also contributes to a decline in the pair today. Manufacturing PMI increased to 52.2 points in November from 51.8 a month earlier.
The AUD/USD pair rose to 0.7364 during the Asian session. The pair is supported by news about the achievement of a trade agreement between the USA and China during the G20 summit. China and the United States are Australia’s largest trading partners. Further development of the trade conflict between these countries would potentially put serious pressure on the Australian economy.
Quotes of gold rose to the level of 1226.56 against the background of the general weakening of the American currency.
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.