Forex News Analysis by LiteForex

Morning Market Review
2019-12-12 08:44 (GMT+2)
EUR/USD

EUR is showing moderate growth against USD during today's Asian session, updating local highs of November 4. The growth of the euro is promoted by not the strongest positions in the US currency, which received an additional impetus to decline after the Fed meeting the day before. As expected, the regulator did not change the parameters of monetary policy, maintaining the rate at 1.75%. At the same time, the Fed made it clear that the current level of rates will remain unchanged for quite a long time. The regulator still did not reach the target inflation levels, but forecasts for the near future do not suggest that these goals will be achieved. Today, investors are focused on the ECB meeting, as well as the press conference of the head of the European regulator Christine Lagarde.

GBP/USD

GBP remains upward in trading against USD. During the Asian session, the instrument adds about 0.16%, again updating record highs of the end of March. British investors are focused on the parliamentary elections in the UK, which will be held today. The markets expect a confident victory for the Conservative Party led by Prime Minister Boris Johnson, which is likely to allow unhindered ratification of the agreement with the EU. However, the updated polls from YouGov reduced optimism regarding the confident victory of the conservatives, as they indicated a sharp reduction in the leadership of the party of Boris Johnson.

NZD/USD

NZD is relatively stable against USD during today's Asian session, consolidating near local highs (0.6602), updated the day before. The instrument was supported on Wednesday by the publication of strong data on Retail Sales in New Zealand, as well as the expected results of the Fed meeting on the interest rate. Sales using electronic payment cards in November grew by 2.6% MoM and 5.1% YoY, which was significantly better than market forecasts (0.5% MoM and 1.5% YoY). Today, published macroeconomic statistics from New Zealand is not so straightforward. The fOod Price Index in November fell by 0.7% MoM after a decline of 0.3% MoM a month earlier. Analysts had expected decline by 0.1% MoM. Visitor Arrivals growth in October slowed down from 1.4% YoY to 0.1% YoY with a forecast of 0.4% YoY.

USD/JPY

USD shows a slight increase against JPY during today's Asian session, adding about 0.02%. Despite the weakened position of the US currency after the Fed meeting, the "bullish" activity on the instrument is supported by relatively high demand for risk, as well as the publication of disappointing macroeconomic statistics from Japan. Core Machinery Orders in Japan in October decreased by 6% MoM after a decrease of 2.9% MoM in the previous month. Analysts had expected growth rate at 0.9% MoM. YoY, the indicator declined by 6.1% as opposed to the growth by 5.1% last month. Forecasts suggested a decrease of only 1.8% YoY.

XAU/USD

Gold prices are consolidating during today's Asian session after moderate growth the day before, which was supported by the expectation of the Fed meeting and the uncertainty surrounding the increase in import duties on Chinese goods on December 15. The media reported that Donald Trump is likely to postpone the introduction of new duties, but there have been no official comments yet. The published Minutes of the Fed meeting somewhat weakened the position of gold, as the regulator emphasized that in the near future it is not worth expecting a reduction in the interest rate.

Morning Market Review
2019-12-13 08:45 (GMT+2)
EUR/USD

EUR has shown steady growth during today's Asian session, adding about 0.5%. The instrument also managed to update local highs of August 13, rising to the level of 1.1198. The reason for such a significant increase in EUR was the moderately optimistic results of the ECB meeting yesterday. As expected, the European regulator did not change the parameters of monetary policy and kept the rate at the previous zero mark. In addition, the ECB will continue to purchase a monthly bond purchase of EUR 20 billion under the current quantitative easing program. According to updated forecasts, the European economy will show growth of 1.2% this year and will slow down slightly to 1.1% YoY in 2020. Achieving the target inflation rate remains only a distant prospect. By 2022, the ECB expects acceleration of inflation to only 1.6%.

GBP/USD

GBP shows a sharp increase during today's Asian session, updating record highs of May 2018. The growth of the instrument at the moment is more than 2.20% and is mainly due to the publication of preliminary results of voting in the elections to the British Parliament. As expected, the party of Boris Johnson is going to parliament with an overwhelming majority, which will allow Brexit to be implemented before the deadline in the end of January 2020. During the day, investors expect the publication of macroeconomic statistics from the United States, while there will be not much statistics from the UK. The US are expected to publish November data on Retail Sales, and also a statement by Fed representative John Williams is expected.

NZD/USD

NZD is growing moderately during today's Asian session, updating local highs of July 2019. The instrument adds about 0.30%, receiving support from the publication of macroeconomic statistics from New Zealand. Business NZ PMI in November fell from 52.6 to 51.4 points, remaining in the growth zone contrary to forecasts of a decrease to 49.8 points. Additional support for the instrument is provided by Donald Trump's statements on Twitter that the parties are very close to concluding a "major deal". The trade conflict between the US and China is very worrying for investors, since the US may increase import duties on Chinese goods next Sunday, which will only aggravate the situation.

USD/JPY

USD is showing growth during today's Asian session, continuing the development of the "bullish" impulse formed the day before. At the moment, USD is adding about 0.28%, receiving support from the growth of optimism regarding the prospects for a trade agreement between the US and China. In addition, investors are reacting to the publication of the preliminary results of the elections to the British Parliament, where Boris Johnson’s party wins, which will allow him to ratify the agreement with the EU in the near future. Additional pressure on the yen is provided by uncertain macroeconomic statistics from Japan. Industrial Production in Japan in October fell by 7.7% YoY after falling by 7.4% YoY in September. In monthly terms, production decreased by 4.5% MoM after a decrease of 4.2% in the previous month. Tankan Large Manufacturers Index in Q4 2019 fell from 5 to 0 points, which turned out to be worse than forecasts about a decrease to 2 points.

XAU/USD

Gold prices are slightly decreasing during today's Asian session, losing about 0.12%. The instrument develops an uncertain "bearish" impulse, which was supported by Donald Trump's statements on Twitter that the US and China are close to concluding a trade deal. The issue of increasing import duties on December 15 remains open. Nevertheless, there is information in the media that indicates Washington’s readiness to abandon the introduction of new tariffs. Moreover, investors are hoping to reduce some of the existing import duties. Finally, the first results of parliamentary elections in the UK contribute to the development of negative dynamics in gold. As expected, the Conservative Party is gaining a landslide victory, which will allow it to gain an overwhelming majority in parliament.

Morning Market Review
2019-12-16 08:48 (GMT+2)
EUR/USD

EUR shows a slight increase against USD during today's Asian session, adding about 0.13% compared with the closing session last Friday. On December 13, the instrument showed a sharp increase updating local highs of August 13, after which it quickly lost almost all of its advantage, responding to reports of the signing of the first phase of a trade agreement between the United States and China. A little later, on Twitter Donald Trump confirmed that the parties reached an agreement and the increase in import duties planned for December 15 will be canceled. Today, investors expect publication of statistics on business activity in Europe and the United States for December. It is expected that Markit Composite PMI of euro zone in December will grow from 50.6 to 50.9 points, which will provide moderate support to the euro.

GBP/USD

GBP is growing against USD during today's Asian session, adding about 0.39% and continuing to develop the "bullish" momentum formed at the end of last week after the publication of preliminary results of parliamentary elections in the UK. As expected, the Conservative Party led by Boris Johnson won a landslide victory, gaining 368 out of 650 seats in Parliament. This has been the best result for the conservatives since Margaret Thatcher. Today, investors are focused on statistics from the UK on business activity for December. Services PMI is expected to rise from 49.3 to 49.6 points in December. Manufacturing PMI may rise from 48.9 to 49.4 points over the same period.

NZD/USD

NZD shows flat trading dynamics during the Asian session, consolidating near the local highs, updated last Friday. The pair showed rather active growth at the end of last week, responding to reports of the signing of the first phase of a trade agreement between the United States and China, but the instrument failed to consolidate at the new local highs. Moderate pressure on NZD on Monday is exerted by the Business NZ Performance of Services Index. In November, the index fell from 55.4 to 53.3 points, which turned out to be worse than the average expectations. In turn, Chinese statistics provide the pair with slight support. Industrial Production in China in November showed an increase of 6.2% YoY after an increase of 4.7% YoY a month earlier. Analysts had expected growth by 5% YoY. Retail Sales for the same period increased by 8% YoY after rising by 7.2% YoY a month earlier. The forecast assumed an increase of 7.6% YoY.

USD/JPY

USD is strengthening against JPY during today's Asian session, adding about 0.09%. The growth of USD is facilitated by an increase in interest in risk at the market after the signing of the first phase of the trade agreement between the USA and China and the cancellation of the increase in import duties on Chinese goods planned for December 15. In addition, investors are responding to the landslide victory of conservatives in the election to the British Parliament, which will significantly reduce uncertainty regarding Brexit. Additional pressure on JPY today is provided by uncertain macroeconomic statistics from Japan. Jibun Bank's Manufacturing PMI dropped from 48.9 to 48.8 points in December, which, however, turned out to be better than forecasts of 48.4 points. Tertiary Industry Index in October decreased by 4.6% MoM after growth by 1.8% MoM in the previous month. Analysts had expected positive dynamics to remain at 0.7% MoM.

XAU/USD

Gold prices showed a moderate increase at the end of last week, responding to the corrective sentiment on USD, due to the rapid fading of the "bullish" momentum after the announcement of the conclusion of a trade deal between the US and China. Today, the instrument shows ambiguous dynamics, trading near the opening level of 1475.27, waiting for new drivers to appear at the market. Demand for gold may decline markedly in the near future amid the removal of the risks of uncertainty around Brexit and the US-PRC trade conflict.

Morning Market Review
2019-12-17 08:51 (GMT+2)
EUR/USD

EUR shows flat dynamics against USD during today's Asian session, maintaining a "bullish" momentum formed at the beginning of last trading week. The euro is adding about 0.04%, expecting new drivers for growth. The instrument had a moderate positive trend on Monday; however, the macroeconomic background of the beginning of the week remains ambiguous. Manufacturing PMI of the euro area in December fell from 46.9 to 45.9 points against the forecast of growth to 47.3 points. At the same time, Services PMI grew from 51.9 to 52.4 points, which turned out to be better than market expectations of 52 points. Separately, investors were disappointed with data from Germany. German Manufacturing PMI fell from 44.1 to 43.4 points against the forecast of 44.5 points. German Services PMI increased again from 51.7 to 52 points, meeting market expectations. Composite PMI in December consolidated at the previous level of 49.4 points, contrary to expectations of growth to 49.9 points.

GBP/USD

GBP is declining during today's Asian session, correcting after sharp growth over the last two trading sessions. The instrument is testing 1.3300 for a breakdown, although during the first hours of trading, the pound fell to the level of 1.3234. The euphoria from the confident victory of the Conservative Party of Great Britain in the parliamentary elections is gradually passing, and not the most successful macroeconomic statistics comes to the fore. Markit Manufacturing PMI of the UK in December fell from 48.9 to 47.4 points against the forecast of growth to 49.3 points. Services PMI also showed a decrease from 49.3 to 49 points against the forecast of growth to 49.5 points. Today, investors are waiting for the publication of UK labor market data. In addition, closer to the end of the afternoon session, Bank of England Governor Mark Carney should give his speech.

AUD/USD

AUD is going down against USD during today's Asian session, losing about 0.22%. Pressure on the instrument is exerted by not the most successful macroeconomic statistics from Australia, as well as the publication of last RBA meeting minutes, at which the monetary policy parameters were preserved unchanged. Australian Home Loans in October grew by 0.6% MoM after the decline of 3% MoM in the previous month. Analysts had expected growth rate at 1% MoM. At the same time, Invest Housing Finance in October grew by 2% MoM after an increase of 1.1% MoM in September. During the day, investors expect publication of statistics on the housing market and the US industrial production in November.

USD/JPY

USD shows flat dynamics of trading against JPY during today's Asian session. The pair is consolidating after moderate growth the day before, which again brought the dollar to local highs (109.69), updated at the end of last week. Monday's macroeconomic statistics clearly contributed to the development of the uptrend in the instrument. Jibun Bank's Manufacturing PMI dropped from 48.9 to 48.8 points in December, which, however, turned out to be better than forecasts of 48.4 points. Tertiary Industry Index in October decreased by 4.6% MoM after growth by 1.8% MoM in the previous month. Analysts had expected positive dynamics to remain at 0.7% MoM. In turn, American statistics turned out to be better than the forecasts. Services PMI in December rose from 51.6 to 52.2 points against the forecast of 52 points. Composite PMI in December rose from 52 to 52.2 points against the forecast of 51.9 points.

XAU/USD

Gold prices are stable at the beginning of the new week and consolidate near the levels of 1475.00–1480.00. Friday's growth gave way to flat dynamics amid the fading of previous growth factors, one of which was the fact that the US and China had agreed upon a trade deal. In addition, China managed to avoid new import duties, which should have a positive effect on global trade. The uncertainty in the market was also lowered by the confident victory of the Conservative Party of Great Britain in the early parliamentary elections, which will allow Boris Johnson to carry out the Brexit procedure without any special obstacles by the end of January next year.

Morning Market Review
2019-12-18 08:52 (GMT+2)
EUR/USD

EUR is weakening against USD during today's Asian session, losing about 0.13%. The development of the correctional dynamics for the instrument is largely due to technical factors, since the euro, with varying success, completed 6 trading sessions with moderate growth. Tuesday's macroeconomic statistics from the euro area provided little support to the pair. Meanwhile, the euro area's Trade Balance s.a. in October rose from EUR 18.7B to 24.5B, which was significantly better than market expectations of EUR 19.3B. Today, European investors expect the publication of statistics from the euro area on consumer inflation for November. However, forecasts again do not inspire optimism, and therefore no support for the instrument is expected yet. In addition, the market expects another speech by the ECB President Christine Lagarde.

GBP/USD

GBP declines against USD during today's Asian session, updating local lows of December 12. The pound collapsed by more than 1.5% amid growing alarming concerns about the possibility of a trade agreement between the UK and the EU before the end of 2020. Having gained a strong majority in the British parliament, Boris Johnson intends to legislatively limit the transition period for Britain after the country's exit from the EU. The UK and the EU are trying to conclude a trade agreement that could help smooth out the problems that arise as a result of Brexit and keep the United Kingdom access to the European market. Additional pressure on the pound on Tuesday is exerted by uncertain macroeconomic statistics from the UK. In October, Average Earnings Including Bonus slowed down from +3.7% 3MoY to +3.2% 3MoY with a forecast of +3.4% 3MoY. Claimant Count Change in November increased from 26.4K to 28.8K with a forecast of a decrease to 24.5K.

AUD/USD

AUD is falling against USD during today's Asian session, continuing to develop a "bearish" impulse formed at the end of last week. The instrument is testing the level of 0.6840, losing about 0.08%. The macroeconomic statistics from Australia failed to provide any significant support to AUD. Australian Home Loans in October grew by 0.6% MoM after the decline of 3% MoM in the previous month. Analysts had expected growth rate at 1% MoM. Investment Lending for Homes in October grew by 2% MoM after an increase of 1.1% MoM in September. Today, investors are focusing on the speeches by the US Fed representatives, Lael Brainard and Charles Evans, but interesting macroeconomic statistics from Australia will not appear until Thursday, when the November labor market report comes out.

USD/JPY

USD declines slightly against JPY during today's Asian session, developing a correctional impulse formed the day before. At the same time, the instrument is still located not far from the local highs at 109.71, which the dollar managed to update at the beginning of the month. Slight support for the yen on Wednesday is provided by statistics on the trade balance, which came out slightly better than their negative forecasts. Exports from Japan in November fell by 7.9% YoY after falling 9.2% YoY in October. Analysts had expected decline by 8.6% YoY. Imports for the same period decreased by 15.7% YoY, accelerating their decline from the previous –14.8% YoY. Market forecasts suggested a decline of only 12.7% YoY. The total Trade Balance for November was JPY –82.1B with a forecast deficit of JPY 369B. In October, the Trade Balance showed a surplus of JPY 15.7B.

XAU/USD

Gold prices have been stable during today's Asian session, continuing a similar trend in the last two trading sessions. Investors are in no hurry to open new trading positions, preferring to wait for new drivers to appear at the market. Macroeconomic statistics from the United States provided moderate support to the dollar. Industrial Production in November increased by 1.1% MoM after a decrease of 0.9% MoM a month earlier. The indicator also turned out stronger than its forecasts for an increase of 0.8% MoM. However, interest in risk is currently not so strong. The euphoria from the conclusion of the preliminary trade agreement between the USA and China has long passed, and the landslide victory of conservatives in the UK elections can now threaten with complication in negotiations with the EU on a trade agreement.

Morning Market Review
2019-12-19 08:54 (GMT+2)
EUR/USD

EUR is showing moderate growth against USD during today's Asian session, correcting after falling the day before. The instrument adds about 0.07%, testing the level of 1.1130 for breakout. Moderate support for the euro is provided by data from Germany released on Wednesday. German Ifo Business Climate Index in December rose from 95.1 to 96.3 points against the forecast of growth to 95.5 points. German Current Assessment for the same period rose from 98 to 98.8 points, which also turned out to be better than expectations of 98.1 points. German Business Expectations in December increased from 92.3 to 93.8 points against expectations of 93 points. At the same time, data on consumer inflation from the euro area limited the development of "bullish" sentiment on the instrument. In November, Consumer Price Index decreased by 0.3% MoM, while in October the indicator showed a weak increase by 0.1% MoM. In annual terms, inflation remains in the area of 1% YoY.

GBP/USD

GBP is relatively stable during today's Asian session, consolidating after a steady two-day decline. Currently, the pair is trading near 1.3080, losing about 0.02%. Moderately optimistic macroeconomic statistics from the UK released yesterday did not provide significant support to GBP, although it contributed to some reduction in "bearish" pressure. Consumer Price Index in the UK in November rose by 1.5% YoY, which was 0.1% better than expectations and coincided with October data. In monthly terms, Consumer Inflation increased by 0.2% MoM after falling by the same amount a month ago. Retail Price Index in November also increased by 0.2% MoM, accelerating after a decline of 0.2% MoM in October. Today, investors expect the publication of Bank of England's meeting minutes on the interest rate. It is expected that the monetary policy parameters will remain unchanged, and only 2 out of 9 board members can speak out for a cut in rates.

NZD/USD

NZD is showing uncertain growth during today's Asian session, continuing the development of the "bullish" impulse formed the day before. The pair is adding about 0.09% preparing to test 0.6600. The instrument is supported by good macroeconomic data from New Zealand. New Zealand's GDP in Q3 2019 increased by 0.7% QoQ after a growth of 0.1% QoQ in the previous quarter. Analysts had expected growth rate at 0.6% QoQ. In annual terms, GDP growth amounted to 2.3% YoY, which also turned out to be better than the data of the previous period at 2.1% YoY, but slightly worse than market expectations of 2.4% YoY. Additional support for the rate was provided by export data. In November, export volumes increased by 5.23B dollars after an increase of 5.01B dollars a month earlier. The trade deficit in November decreased slightly and amounted to –4.82B dollars.

USD/JPY

USD is slightly strengthening against JPY at today's Asian session, again approaching local highs of December 13. The yen is reacting with restraint to the publication of the Bank of Japan decision on the interest rate. As expected, the key rate remained unchanged at –0.1%. At a follow-up press conference, representatives of the Bank noted that the Japanese economy continued moderate growth, but significant risks were still present. Annual inflation rates are located near the level of +0.5% YoY, which is significantly lower than the target levels of the regulator.

XAU/USD

Gold prices are relatively stable during today's Asian session, adding about 0.10%. Demand for gold persists amid continued growth in market uncertainty. The euphoria from the conclusion of the first phase of the trade agreement between the United States and China has long passed, and now investors are trying to understand how the parties will act further to come to a full agreement. In addition, markets are concerned about the process of trade negotiations between the UK and the EU, which should begin after the completion of the Brexit procedure before the end of January 2020.

Morning Market Review
2019-12-20 08:49 (GMT+2)
EUR/USD

EUR is showing a moderate decline against USD during today's Asian session. The instrument is preparing to test the level of 1.1110, losing about 0.07%. The "bearish" trend replaced the uncertain growth, which was due to not the most successful macroeconomic statistics from the US on Thursday. US Existing Home Sales in November fell by 1.7% MoM after a 1.5% MoM growth last month. Analysts expected a decline of 0.2% MoM. Philadelphia Fed Manufacturing Index in December fell sharply from 10.4 to 0.3 points with a forecast of a decrease of only 8 points. During the day, investors expect publication of statistics from the United States on annual GDP growth rates for Q3 2019 (updated data) and the dynamics of Personal Income and Spending for November. The euro area is expected to release Consumer Confidence data in December, as well as Current Account balance statistics for October.

GBP/USD

GBP is relatively stable against USD during today's Asian session, consolidating after the next "bearish" session the day before. UK macroeconomic data released yesterday turned out to be worse than market expectations. Retail Sales in the UK in November fell by 0.6% MoM after zero dynamics in October. Analysts had expected growth by 0.3% MoM. In annual terms, Retail Sales growth slowed down from 3.1% YoY to 1% YoY, which also turned out to be worse than forecasts of 2.1% YoY. The results of the meeting of the Bank of England did not have a significant impact on the dynamics of the instrument, since they fully met the expectations of the market. The key interest rate was maintained unchanged at 0.75%, as well as the volume of the quantitative easing program at 435 billion pounds. 7 out of 9 board members voted to maintain the key rate at the same level.

AUD/USD

AUD shows moderate growth against USD during today's Asian session, adding about 0.17%. AUD is still supported by the strong report on the Australian labor market released yesterday. The Employment level in Australia in November rose by 39.9K jobs after falling by 19K in October. Experts expected the employment to grow by14K only. The November Unemployment Rate fell from 5.3% to 5.2%, while analysts did not expect any changes. Participation Rate remained at the previous level of 66%. The development of "bullish" trend in the instrument is also facilitated by the publication of not-so-good macroeconomic statistics from the US on Existing Home Sales.

USD/JPY

USD declines slightly against JPY during today's Asian session, losing about 0.02%. Support for the yen is provided by macroeconomic statistics from Japan published on Friday. The national Consumer Price Index in November showed an increase of 0.5% YoY after an increase of 0.2% YoY in October. Analysts had expected a previous growth rate of 0.2% YoY. National CPI ex Food, Energy rose by 0.8% YoY in November, accelerating from 0.7% YoY. Experts expected the index to correct to 0.6% YoY. During the day, traders expect the release of data from the US on the dynamics of GDP growth for Q3 2019, as well as the publication of information on Personal Income and Spending of Americans in November.

XAU/USD

Gold prices are stable during today's Asian session, consolidating after a slight increase the day before. Support for the instrument, in addition to not the most successful macroeconomic statistics from the USA, is provided by the growth of uncertainty around future US-Chinese trade negotiations and the situation around the impeachment of Donald Trump. The House of Representatives voted in favor of impeachment, and now the president will have to stand trial in the Senate. However, given that the Senate is controlled by Trump's party members, it is unlikely that impeachment will take place.

Morning Market Review
2019-12-23 08:53 (GMT+2)
EUR/USD

EUR is relatively stable against USD during today's Asian session. The instrument is trading near the opening level of 1.1079, reacting to weakening volatility in anticipation of Christmas holidays. Investors are still focused on the macroeconomic statistics from the United States, published last Friday. The updated annual GDP data confirmed the growth of the American economy by 2.1% YoY, and the price index of GDP increased by 1.7% YoY. At the same time, analysts expected an increase in GDP Price Index to 1.8% YoY. The greatest support to the US currency was provided by the data on Personal Income. In November, Personal Income increased by 0.5% MoM after growth by 0.1% MoM. Analysts had expected growth by 0.3% MoM. Personal Spending for the same period accelerated from 0.3% MoM to 0.4% MoM, which coincided with market forecasts.

GBP/USD

GBP shows a slight increase of 0.05% against USD during today's Asian session, continuing to test the level of 1.3000 for a breakdown. At the same time, the British currency remains downward in the short term and threatens to show the most significant decline since 2017 against the backdrop of a parliamentary vote on the Brexit deal with the EU. This time, the British Parliament approved the agreement, and Boris Johnson got the opportunity to implement Brexit until the deadline on January 31, 2020. It is also worth noting that the Parliament is trying to limit the duration of the transition period that will operate after Britain leaves the EU and will provide the United Kingdom with easy access to the European market.

AUD/USD

AUD shows moderate growth against USD during today's Asian session, adding about 0.15%. The instrument develops a "bullish" impulse, formed in the middle of last week, and updates local highs of December 13. Australian macroeconomic statistics released on Monday does not provide any significant support to the pair. Private Sector Credit in November showed a slight increase of 0.1% MoM, while investors expected acceleration from 0.1% MoM to 0.3% MoM. In annual terms, credit growth slowed down from 2.5% YoY to 2.3% YoY. During the day, investors expect publication of data from the US on Chicago Fed National Activity and on Durable Goods Orders in November.

USD/JPY

USD is stable against JPY during today's Asian session, trading near the opening level of 109.39. Pressure on the instrument today is exerted by macroeconomic statistics from Japan. All Industries Activity Index went down by 4.3% MoM after an increase of 1.5% MoM a month earlier. Analysts had expected positive dynamics to remain at 0.2% MoM. On Monday, investors will be focused on macroeconomic statistics from the United States, while interesting data from Japan will not appear until tomorrow, when a meeting of the Bank of Japan Monetary Policy Committee will take place.

XAU/USD

Gold prices are rising during today's Asian session, continuing the development of a weak "bullish" trend in the short term. The instrument adds about 0.20% and is trading near the local high, updated on December 12. A certain pressure on gold is exerted by a certain decrease in market tension at the end of the year against the background of reaching consensus on trade negotiations between the USA and China and finally setting a point in the protracted Brexit process. It is expected that the deal between the United States and China will be signed in early January, while the UK should leave the

Morning Market Review
2019-12-24 08:48 (GMT+2)
EUR/USD

EUR shows flat dynamics during today's Asian session, consolidating after a slight increase the day before. Market activity remains low due to Christmas holidays, and the amount of interesting news is noticeably reduced. Monday's macroeconomic statistics turned out to be contradictory. German Import Price Index in November increased by 0.5% MoM after a decrease of 0.1% MoM in the previous month. Analysts had expected growth of 0.4% MoM. In annual terms, the index grew from –3.5% YoY to –2.1% YoY, which also turned out to be slightly better than the forecasts of –2.3% YoY. American statistics showed weak growth in the volume of Durable Goods Orders. Goods Orders Non Defense Ex Air in November grew by only 0.1% MoM after rising by 1.1% MoM a month earlier. Analysts had expected growth of 0.2% MoM.

GBP/USD

GBP shows slight growth during today's Asian session, trading near the opening level of 1.2933. The instrument is again trying to correct against the backdrop of the development of a steady decline of last week, which is due to the growth of risks of the hard Brexit. The British Parliament voted to approve the deal with the EU, so the UK will be able to complete the Brexit process before the end of January 2020. However, Boris Johnson is also trying to limit the duration of the transition period (up to December 2020), which may be too short to work out all the mechanisms for cooperation with the EU. Macroeconomic statistics published yesterday had a mixed effect on the pair. Insignificant support to the dollar was provided by data on the dynamics of New Home Sales in the United States. The indicator grew by 1.3% MoM in November after the decline by 2.7% MoM a month earlier. Analysts had expected negative dynamics to remain at –0.3% MoM.

NZD/USD

NZD has shown negative dynamics against USD at today's Asian session. The instrument loses about 0.14% and retreats from local highs, updated the day before (0.6638). New Zealand markets are closed on Christmas Day, so investor activity has declined markedly, and traders are focused on statistics from the United States. An additional source of drivers is the trade relationship between the United States and China. Support for the US currency was provided by China's statements on reducing import duties on 859 types of American goods for next year.

USD/JPY

USD is stable against JPY during today's Asian session, trading near the opening level of 109.38. Moderate pressure on the Japanese currency is exerted by Monday's macroeconomic statistics from Japan. Leading Index in October fell from 91.8 to 91.6 points with a neutral forecast. All Industries Activity Index for the same period decreased by 4.3% MoM after an increase of 1.5% MoM in September. Analysts had expected growth of 0.2% MoM. Coincident Index in October rose from 94.8 to 95.3 points with a forecast of 94.8 points.

XAU/USD

Gold prices show moderate growth during today's Asian session, adding about 0.25%. The instrument develops a "bullish" momentum formed the day before, as investors again began to raise doubts about the prospects for trade relations between the United States and China. On Saturday, Donald Trump said that the first phase of the agreement will be signed in the first half of January, but experts say that many important questions remain unanswered. China, in turn, said that from January 1, 2020, it will reduce import duties on a number of American goods, which should have a favorable effect on the subsequent stages of the negotiations between Beijing and Washington.

Morning Market Review
2019-12-26
EUR/USD

EUR/USD

EUR is stable against USD during today's Asian session, trading near the opening level of 1.1089. Activity in the market remains low due to the Christmas holidays and the approaching end of the year. In addition, no significant macroeconomic statistics are expected to be published by the end of the week, and the previous drivers seem to have exhausted themselves. Investors are still focused on trade talks between the US and China. On Tuesday, Donald Trump announced that the parties would sign a trade agreement at an official ceremony, but there was no exact timeline. During the day, investors expect publication of data on Initial Jobless Claims in the US for the week ending December 20, as well as on MBA Mortgage Applications.

GBP/USD

GBP is growing against USD during today's Asian session, correcting after a powerful "bearish" rally, caused by growing fears about the hard Brexit. The pound is trading at 1.2985, adding about 0.25%. After the British Parliament approved the deal with the EU, investors turned their attention to the so-called transition period, which will be valid until December 2020. It is expected that at this time the UK and the EU will be able to agree on all the nuances in order to maintain the simplified access of the UK to the EU market, and will also touch upon the issue of the Irish border. Analysts believe that one year may not be enough for this, but Boris Johnson insists that this period should not be extended.

AUD/USD

AUD is growing against USD during today's Asian session, again approaching the local highs, updated on December 13. The instrument adds about 0.14%. The market is characterized by an extremely low level of volatility, which is associated with the Christmas holidays and the approaching end of the calendar year. AUD is still supported by optimism about improving trade relations between the US and China after the announcement of consensus on the first phase of the agreement. Despite the absence of any details, including the deadline for signing the first phase of the agreement, the market is very optimistic, counting on a noticeable warming in relations between the two countries.

USD/JPY

USD shows quite an active increase against JPY during today's Asian session, adding about 0.15%. The growth of the US currency is due to the thin market, characterized by extremely low volatility due to the Christmas holidays. Thursday's macroeconomic statistics from Japan turned out to be ambiguous. Foreign Bonds Buying for the week ending December 20 decreased by 927.6B yen after an increase of 521.9B yen last week. Foreign Investments in Japanese Stocks, by contrast, increased by 148.4B yen after a decrease of 53.3B yen over the past period.

XAU/USD

Gold prices are rising during today's Asian session, updating local highs of November 5. The instrument is trading near 1503.70. Gold is in demand amid some stabilization of stock markets, as well as due to the lack of specific information regarding the trade agreement between the United States and China. It is expected that the first phase of the deal will be signed at an official ceremony, which may take place in the first half of January.