Morning Market Review
2019-12-27
EUR/USD
EUR has shown strong growth against USD during today's Asian session, developing an uncertain "bullish" momentum from the beginning of the week. The instrument is testing the level of 1.1200, adding about 0.20%. The growth of the pair is largely due to technical factors, which are repeatedly amplified against the background of extremely low volatility and the "thin" market. During the day, investors are awaiting the publication of the Eurozone Economic Bulletin, as well as data on Retail Sales in Spain and the Unemployment Rate in Italy in November.
GBP/USD
GBP is correcting upwards against USD during today's Asian session, trading near local highs of December 23, updated the day before. The instrument adds about 0.10% and is actively testing the level of 1.3000 for a breakout. The growth of the British currency is largely due to technical factors, since there are few interesting macroeconomic statistics at the market, and overall volatility remains low due to the Christmas and New Year holidays. Macroeconomic data from the USA published the day before turned out to be contradictory. Initial Jobless Claims for the week ending December 20 decreased from 235K to 222K, which was slightly better than forecasts of 224K. In turn, Continuing Jobless Claims for the week ending December 13 decreased from 1.725M to 1.719M, which turned out to be worse than market expectations of 1.691M.
NZD/USD
NZD continues quite active growth against USD, updating record highs of July 25. The instrument is trading near 0.6680, gaining 0.15%. The market is still characterized by extremely low volatility, as many traders prefer to stay out of the market, having gone on Christmas holidays. Moderate support for NZD, in addition to a number of technical factors, is provided by the pending signing of a trade deal between the United States and China. On Wednesday, the PRC representatives said they were in close contact with the US on the issue of agreeing on the details of the signing ceremony. In addition, the market was optimistic about China’s intention to reduce import duties on a number of US products from the beginning of 2020.
USD/JPY
USD is falling against JPY during today's Asian session, losing ground earned the day before. The instrument returned to levels below 109.50. Investors are focused on macroeconomic statistics from Japan today. CPI Tokyo Ex Food and Energy accelerated in December from 0.6% YoY to 0.8% YoY, which turned out to be better than neutral forecasts. At the same time, Retail Sales in November decreased by 2.1% YoY after a record drop of 7% in October. Analysts had expected decline by 1.7% YoY. Over the same period, Industrial Production fell by 8.1% YoY after a decrease of 7.7% YoY last month. Analysts had expected growth by 0.9% YoY.
XAU/USD
Gold prices show a slight increase during today's Asian session, consolidating after a confident "bullish" rally in the last three trading sessions. The growth of the instrument is about 0.13%. The uptrend in prices is due to low trading volumes at the market due to Christmas and New Year holidays, as well as fluctuations in stock exchanges. In turn, pressure on gold is exerted by the growing prospect of signing a trade agreement between the United States and China, which could mark the beginning of a massive improvement in relations between countries, as well as a significant reduction in the risks of a slowdown in the global economy. However, the date of signing the first phase of the agreement is still unknown, and skeptics point to a lot of unresolved issues between the parties of the trade conflict.
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