EUR/USD

The European currency shows ambiguous dynamics against the US dollar during the Asian session on February 11, still under pressure after a confident "bearish" rally last week. At the end of the week, the pair did not show the expected pullback, because the market received information that was able to support the US currency.

The Administration of US President Donald Trump confirmed his intention to hold official talks with China and announced a meeting in Beijing on February 14-15. Many experts believe that even if the negotiations do not end with the signing of a final agreement, the current import prices will remain at the same levels.

On Monday, the market does not expect the release of a large amount of interesting macroeconomic data from the euro area and the United States. Investors will focus on statistics on consumer inflation from Switzerland, Norway and Denmark. With the opening of the American session, preliminary data on the dynamics of costs per labor unit for the Q4 2018 will come to the market.

GBP/USD

The British pound is trading in both directions, remaining in the area of 1.2900. At the end of the last trading week, the instrument managed to show a "bullish" correction, but no significant growth occurred. During the Asian session on February 11, the trading activity of the British currency remains rather low, as investors expect new drivers to appear in the market.

Today, the publication of interesting statistics from the UK is expected. The focus will be on preliminary data on the dynamics of UK GDP for Q4 2018. The indicators are expected to decrease: +0.3% QoQ and +1.4% YoY against the previous +0.6% QoQ and +1.5% YoY. Investors will also be interested in December statistics on manufacturing production. Here, analysts expect improvements in dynamics: +0.2% MoM after a decline of 0.3% MoM in November.

AUD/USD

The Australian dollar shows moderate growth during the Asian session on February 11, corrected after a slurred decline at the end of last week. More confident correction of the Australian currency is hampered by the strengthening of the US dollar, which received additional support last Friday, after the administration of Donald Trump announced a meeting with the leaders of the PRC in Beijing.

On Monday, interesting macroeconomic statistics from Australia is not expected, so investors will continue to rely mainly on data from the United States. In the meantime, moderate support for AUD is provided by published data from China. In particular, the rate of new loans issued in January rose sharply from 1080 to 2970 billion yuan.

USD/JPY

The US dollar shows growth during the Asian session on February 11, correcting after the "bearish" end of the week. The instrument is supported by positive news around the US-PRC trade conflict. As it became known at the end of last week, the final meeting of the heads of the United States and China will be held in Beijing on February 14-15.

The development of the "bullish" dynamics of the instrument contributes to the fact that the markets of Japan are closed on Monday due to the celebration of the National Foundation Day.

Oil

Oil quotes continue to trade in both directions, being under pressure from the fairly strong position of the US currency in the market. Previously, an additional growth factor was the uncertainty surrounding the US-China trade conflict, especially after Donald Trump said on Thursday that he did not intend to meet with Xi Jinping before the deadlines for concluding a deal. However, on Friday Trump's administration announced a meeting of heads of the two states in Beijing on February 14-15.

Additional support for prices is provided by OPEC actions and US sanctions against Venezuela. Last week it became known that in January Saudi Arabia reduced oil production by 400 thousand barrels per day. New sanctions against Venezuela could reduce the total export volume by another 300-500 thousand barrels per day.

Morning Market Review

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.

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