Morning Market Review
2019-12-11 08:42 (GMT+2)
EUR/USD
EUR is relatively stable against USD during today's Asian session. The instrument is trading near the level of 1.1096, a local high of December 6, updated the day before. Moderate growth of the instrument on Tuesday was facilitated by rather optimistic macroeconomic statistics from Europe. ZEW Economic Sentiment index in December showed an increase from –1 to 11.2 points, which turned out to be much better than expectations (–17.7 points). Investors were pleased with the data from ZEW for Germany. German ZEW Current Conditions in December rose from –24.7 to –19.9 points, which turned out to be better than the forecasts at –22.3 points. German ZEW Economic Sentiment for the same period rose from –2.1 to 10.7 points, while the growth forecast was only to zero. During the day, investors expect the publication of statistics from the US on consumer inflation. However, the key event on Wednesday will be the Fed meeting on interest rates, followed by a press conference.
GBP/USD
GBP showed a rather active decline against USD during today's Asian session, falling by 0.35%. Later, the pound managed to return most of the lost positions, and the pair is in the red by only 15 points. Investors are focused on macroeconomic statistics from the UK, published the day before. The UK GDP growth rate in October showed zero dynamics after a decline of 0.1% MoM in September. Analysts had expected growth by 0.1% MoM. Industrial Production in October increased by 0.1% MoM, accelerating from the previous decline of 0.3% MoM. At the same time, the indicator was worse than market expectations of 0.2% MoM. On an annualized basis, production is still in the red (–1.3% YoY) and has only slightly improved compared to the data for the previous period (–1.4% YoY).
AUD/USD
AUD is showing moderate growth against USD during today's Asian session, correcting after a moderate decline of the instrument at the beginning of the week, which led to the renewal of local lows of December 2. The Australian dollar is adding about 0.19%. Macroeconomic statistics from Australia and China released on Tuesday provided little support to the instrument. Australia's House Price Index in Q3 2019 increased by 2.4% QoQ after a decline of 0.7% QoQ in the previous quarter. Analysts had expected growth rate at 0.2% QoQ only. NAB Business Survey in November remained at the same level of 4 points, contrary to forecasts of a decline to 2 points. Chinese statistics showed growth in annual dynamics of consumer prices. In November, CPI accelerated from 3.8% YoY to 4.5% YoY, being better than its forecast of 4.2% YoY.
USD/JPY
USD strengthens against JPY during today's Asian session, updating local highs of December 6 (108.84). "Bullish" activity on the instrument slightly decreased, and the dollar showed a correction to the level of 108.73, expecting the appearance of new drivers on the market. Investors are waiting for the publication of statistics on consumer inflation with the opening of an American session at the market. In particular, it is expected that the Consumer Price Index in November will accelerate from 1.8% YoY to 2.0% YoY. In addition, traders are waiting for the Fed decision on the interest rate. It is unlikely that the US regulator will change monetary policy, but official comments are still important.
XAU/USD
Gold prices are stable during today's Asian session, consolidating after a slight increase the day before. Support for the instrument is provided by corrective sentiment in the American currency ahead of the Fed meeting on the interest rate. In addition, investors fear the approach of December 15, the day when Donald Trump may introduce higher import duties on Chinese goods. There was information in the media that the US plan to postpone the introduction of new duties, but officials have not yet commented on this.
2019-12-11 08:42 (GMT+2)
EUR/USD
EUR is relatively stable against USD during today's Asian session. The instrument is trading near the level of 1.1096, a local high of December 6, updated the day before. Moderate growth of the instrument on Tuesday was facilitated by rather optimistic macroeconomic statistics from Europe. ZEW Economic Sentiment index in December showed an increase from –1 to 11.2 points, which turned out to be much better than expectations (–17.7 points). Investors were pleased with the data from ZEW for Germany. German ZEW Current Conditions in December rose from –24.7 to –19.9 points, which turned out to be better than the forecasts at –22.3 points. German ZEW Economic Sentiment for the same period rose from –2.1 to 10.7 points, while the growth forecast was only to zero. During the day, investors expect the publication of statistics from the US on consumer inflation. However, the key event on Wednesday will be the Fed meeting on interest rates, followed by a press conference.
GBP/USD
GBP showed a rather active decline against USD during today's Asian session, falling by 0.35%. Later, the pound managed to return most of the lost positions, and the pair is in the red by only 15 points. Investors are focused on macroeconomic statistics from the UK, published the day before. The UK GDP growth rate in October showed zero dynamics after a decline of 0.1% MoM in September. Analysts had expected growth by 0.1% MoM. Industrial Production in October increased by 0.1% MoM, accelerating from the previous decline of 0.3% MoM. At the same time, the indicator was worse than market expectations of 0.2% MoM. On an annualized basis, production is still in the red (–1.3% YoY) and has only slightly improved compared to the data for the previous period (–1.4% YoY).
AUD/USD
AUD is showing moderate growth against USD during today's Asian session, correcting after a moderate decline of the instrument at the beginning of the week, which led to the renewal of local lows of December 2. The Australian dollar is adding about 0.19%. Macroeconomic statistics from Australia and China released on Tuesday provided little support to the instrument. Australia's House Price Index in Q3 2019 increased by 2.4% QoQ after a decline of 0.7% QoQ in the previous quarter. Analysts had expected growth rate at 0.2% QoQ only. NAB Business Survey in November remained at the same level of 4 points, contrary to forecasts of a decline to 2 points. Chinese statistics showed growth in annual dynamics of consumer prices. In November, CPI accelerated from 3.8% YoY to 4.5% YoY, being better than its forecast of 4.2% YoY.
USD/JPY
USD strengthens against JPY during today's Asian session, updating local highs of December 6 (108.84). "Bullish" activity on the instrument slightly decreased, and the dollar showed a correction to the level of 108.73, expecting the appearance of new drivers on the market. Investors are waiting for the publication of statistics on consumer inflation with the opening of an American session at the market. In particular, it is expected that the Consumer Price Index in November will accelerate from 1.8% YoY to 2.0% YoY. In addition, traders are waiting for the Fed decision on the interest rate. It is unlikely that the US regulator will change monetary policy, but official comments are still important.
XAU/USD
Gold prices are stable during today's Asian session, consolidating after a slight increase the day before. Support for the instrument is provided by corrective sentiment in the American currency ahead of the Fed meeting on the interest rate. In addition, investors fear the approach of December 15, the day when Donald Trump may introduce higher import duties on Chinese goods. There was information in the media that the US plan to postpone the introduction of new duties, but officials have not yet commented on this.