Morning Market Review
EUR shows ambiguous dynamics of trading against USD during today's Asian session, developing a flat trend in the ultra-short term. The pair strengthens by about 0.05%, receiving support after the publication of mixed macroeconomic statistics from the US. Consumer Price Index in the US in December grew by 0.2% MoM, slowing down from the previous value of 0.3% MoM. Core Consumer Price Index in December slowed from 0.2% MoM to 0.1% MoM. In annual terms, however, the price index rose in December from 2.1% YoY to 2.3% YoY. During the day, investors expect publication of statistics on industrial production in the euro area in November. In addition, a preliminary trade agreement between the United States and China is expected to be signed today.
GBP shows ambiguous dynamics during today's Asian session, remaining under pressure from weak macroeconomic statistics and uncertain prospects after Brexit in late January. Additional pressure on the instrument is exerted by the likelihood of a decrease in interest rates by the Bank of England in the very near future. At the beginning of the week, investors expected a 50% chance of a rate cut in January, but full-fledged changes in the monetary policy vector will probably occur closer to Q2 2020. Today, traders expect the publication of data on Consumer and Industrial inflation in the UK in December. In addition, the markets will be interested in a statement by the representative of the Bank of England Michael Saunders.
NZD declines slightly during today's Asian session, developing a weak "bearish" momentum formed at the beginning of the current trading week. Investors hesitate amid the publication of mixed macroeconomic statistics and expect new drivers to appear. The data from New Zealand published yesterday were controversial. NZIER Business Confidence index in Q4 2019 decreased by 21% QoQ after falling by 40% QoQ in Q3. The number of Building Permits issued in November decreased sharply by 8.5% MoM after a 1.3% MoM decrease in the previous month. Analysts counted on the appearance of positive dynamics (+2.1% MoM). Food Price Index in December also showed a decrease of 0.2% MoM, continuing to develop the negative dynamics of the previous month (–0.7% MoM). Experts counted on zero growth.
USD is falling against JPY during today's Asian session, retreating from local highs, updated the day before. The instrument fell by 0.08% and is trying to consolidate below 110.00. In addition to strengthening technical factors, the publication of mixed macroeconomic statistics on consumer inflation from the US contributes to the USD decline. Today, investors are waiting for the signing of a trade agreement between the United States and China, which may provide moderate support for USD. Despite the fact that the market took into account the fact of achieving preliminary consensus in a trade dispute between the parties, the formal completion of this process will have a positive impact on demand for risk.
Gold prices are showing moderate growth during today's Asian session, retreating from local lows of January 3, updated the day before. The instrument grew by more than 0.3% and is trying to consolidate above the level of 1550.00. Asset growth is mainly driven by technical factors, as well as corrective sentiment in USD amid the publication of mixed macroeconomic statistics on consumer inflation. In turn, the growth of stock markets, as well as the pending signing of a trade agreement between the United States and China, put pressure on the position of gold.