Morning Market Review
EUR shows moderate growth against USD during today's Asian session, continuing the development of the "bullish" impulse formed yesterday. At the same time, buying activity for the instrument in the market remains reduced, as investors expect the Fed meeting on Wednesday and the ECB meeting on Thursday. The euro is adding only 0.03%. Published on Monday, macroeconomic statistics from Europe provides the pair with moderate support. German Exports in October grew by 1.2% MoM after rising by 1.5% MoM in the previous month. Analysts had expected decline by 0.3% MoM. Imports for the same period showed zero dynamics after an increase of 1.2% MoM in September. Due to strong export growth, the Trade Surplus in October rose from 19.2 billion to 20.6 billion euros, which was better than forecasts expecting a correction to 19 billion.
GBP is relatively stable against USD during the Asian session on Tuesday, consolidating near the record high of April 4 (1.3179), updated the day before. As before, the pound is supported by positive expectations regarding the upcoming parliamentary elections, which can decide the outcome of Brexit. According to numerous opinion polls, the Conservative Party has good chances of victory, which will allow Boris Johnson to ratify the agreement with the EU and withdraw Great Britain from the European Union by the end of January 2020. During Tuesday, investors expect the publication of interesting macroeconomic statistics from the UK. Among other things, market participants are interested in data on Manufacturing Production dynamics and GDP growth rates (in monthly terms) for October.
NZD is showing moderate growth against USD during today's Asian session, recovering from a decline earlier this week. At the moment, the growth of the instrument is about 0.14%, and NZD itself is again approaching local highs of this August at around 0.6575. Moderate support for the instrument is provided by statistics on Consumer Inflation from China. CPI rose by 4.5% YoY in November after rising by 3.8% YoY in October. Experts expected the index to accelerate to 4.2% YoY. Additional support for the New Zealand dollar is provided by optimistic news regarding the conclusion of a trade agreement between the United States, Mexico and Canada (USMCA).
USD shows a slight increase against JPY during today's Asian session, adding about 0.03%. Investors are in no hurry to open new trading positions ahead of the meetings of the Fed and the ECB in the middle of the week, and the yen, in turn, is stable against the backdrop of market uncertainty. First of all, investors are concerned about the possible introduction of new import duties on Chinese goods on December 15, since the administration of Donald Trump did not report anything new on this subject, and the parties obviously have not time to sign a trade agreement until that moment. In addition, strong macroeconomic statistics on GDP published at the beginning of the week provide additional support for the yen. In Q3 2019, the Japanese economy grew by 0.4% QoQ after growing by 0.1% QoQ a month earlier. Analysts had expected growth rate at 0.2% QoQ.
Gold prices show a slight increase during today's Asian session, developing a weak "bullish" momentum formed earlier. Gold is supported by continued uncertainty surrounding US-China trade negotiations. Earlier, the Chinese Assistant Minister of Commerce Ren Hongbin said that Beijing was counting on an agreement in the near future, but there were very few specifics, as always. Meanwhile, markets fear that on December 15, Donald Trump will introduce new import duties on Chinese goods, which may erase all progress in negotiations during this time. As for the upcoming meetings of the Fed and the ECB in the middle of the week, investors do not expect any changes in the monetary policy vector from regulators; however, the comments of officials will be very important, especially considering that Christine Lagarde will deliver her first speech as President of the ECB.