LiteForex analitics. Morning Market Review
EUR/USD
The euro rose markedly against the US dollar on Tuesday, updating local highs of March 7. Growth was happening in view of the publication of ambiguous macroeconomic statistics on consumer price dynamics from the United States. In addition, investors are still evaluating the report on the US labor market published at the end of last week. By the close of the day's session, EUR showed a correctional dynamics, which was a market reaction to the results of the British parliamentary vote on Brexit. As expected, despite Theresa May’s efforts and some concessions on the Irish border, parliamentarians rejected the agreement. Now, the country is waiting for a vote to leave the EU without the deal. If it fails (and the likelihood of this is extremely high), on March 14, Parliament will vote to postpone Brexit. On Wednesday, investors are awaiting publication of January statistics on industrial output in the Eurozone. Also, the market will be interested in speeches of the ECB representatives Yves Mersch and Benoit Coeuré.
GBP/USD
The pound fell sharply on Tuesday, departing from local highs of 28 February. The reason for the return of active sales were the results of voting in the UK Parliament on the country's withdrawal from the EU. There were 391 votes "against", while only 242 voted "for". The parliamentarians did not appreciate the efforts of Theresa May, which led to the fact that Brussels made some amendments to the agreement on the Irish border. On March 13, there will be another vote, about the withdrawal from the EU without the deal. This initiative is expected to also fail to be approved since it seems that parliamentarians are determined to keep the UK within the EU. On Tuesday, macroeconomic statistics from the UK provided some support for the pound. In January, GDP increased by 0.5% MoM after declining by 0.4% MoM in December. Analysts were expecting the growth of 0.2% MoM. Industrial output in January rose by 0.6% MoM after falling by 0.5% MoM last month.
AUD/USD
On Tuesday, the Australian dollar ended with moderate growth, which led to the update of the local maxima of March 6. Today, AUD is trading down, which is facilitated by weak macroeconomic statistics from Australia. Westpac consumer confidence index in March showed a decline of 4.8% MoM after rising by 4.3% MoM last month. The instrument is still pressured by the publication of statistics on mortgage lending and Business Confidence/Conditions indices on Tuesday.
USD/JPY
The US dollar is trading in both directions with the Japanese yen, playing out an ambiguous macroeconomic background and lasting uncertainty in the market. The pressure on the dollar on Tuesday was caused by weak macroeconomic statistics on consumer inflation in the United States. The Consumer Price Index in February rose by 1.5% YoY. In January, the prices increase was 1.6% YoY. The index excluding food and energy slowed from 0.2% MoM to 0.1% MoM. YoY, prices rose by 2.1% after growing by 2.2% last month. Today, the yen is pressured by data from Japan. The demand for machine-building products in January fell sharply by 5.4% MoM and 2.9% YoY, while analysts expected a decline of 1.7% MoM and 2.3% YoY.
Oil
Oil prices rose slightly on Tuesday, supported by optimistic statements from Saudi Arabia, which regularly fulfills its obligations under the OPEC agreement and is trying to accelerate the process of reducing exports. Additional support is provided by supply disruptions from Venezuela, where there are problems with electricity supply. The report on oil reserves of the American Petroleum Institute (API), published on Tuesday, indicated a decrease in reserves by 2.58 million barrels after rising by 7.29 million over the previous period. On March 13, investors expect the publication of the final report on oil reserves in the USA from the Department of Energy.
EUR/USD
The euro rose markedly against the US dollar on Tuesday, updating local highs of March 7. Growth was happening in view of the publication of ambiguous macroeconomic statistics on consumer price dynamics from the United States. In addition, investors are still evaluating the report on the US labor market published at the end of last week. By the close of the day's session, EUR showed a correctional dynamics, which was a market reaction to the results of the British parliamentary vote on Brexit. As expected, despite Theresa May’s efforts and some concessions on the Irish border, parliamentarians rejected the agreement. Now, the country is waiting for a vote to leave the EU without the deal. If it fails (and the likelihood of this is extremely high), on March 14, Parliament will vote to postpone Brexit. On Wednesday, investors are awaiting publication of January statistics on industrial output in the Eurozone. Also, the market will be interested in speeches of the ECB representatives Yves Mersch and Benoit Coeuré.
GBP/USD
The pound fell sharply on Tuesday, departing from local highs of 28 February. The reason for the return of active sales were the results of voting in the UK Parliament on the country's withdrawal from the EU. There were 391 votes "against", while only 242 voted "for". The parliamentarians did not appreciate the efforts of Theresa May, which led to the fact that Brussels made some amendments to the agreement on the Irish border. On March 13, there will be another vote, about the withdrawal from the EU without the deal. This initiative is expected to also fail to be approved since it seems that parliamentarians are determined to keep the UK within the EU. On Tuesday, macroeconomic statistics from the UK provided some support for the pound. In January, GDP increased by 0.5% MoM after declining by 0.4% MoM in December. Analysts were expecting the growth of 0.2% MoM. Industrial output in January rose by 0.6% MoM after falling by 0.5% MoM last month.
AUD/USD
On Tuesday, the Australian dollar ended with moderate growth, which led to the update of the local maxima of March 6. Today, AUD is trading down, which is facilitated by weak macroeconomic statistics from Australia. Westpac consumer confidence index in March showed a decline of 4.8% MoM after rising by 4.3% MoM last month. The instrument is still pressured by the publication of statistics on mortgage lending and Business Confidence/Conditions indices on Tuesday.
USD/JPY
The US dollar is trading in both directions with the Japanese yen, playing out an ambiguous macroeconomic background and lasting uncertainty in the market. The pressure on the dollar on Tuesday was caused by weak macroeconomic statistics on consumer inflation in the United States. The Consumer Price Index in February rose by 1.5% YoY. In January, the prices increase was 1.6% YoY. The index excluding food and energy slowed from 0.2% MoM to 0.1% MoM. YoY, prices rose by 2.1% after growing by 2.2% last month. Today, the yen is pressured by data from Japan. The demand for machine-building products in January fell sharply by 5.4% MoM and 2.9% YoY, while analysts expected a decline of 1.7% MoM and 2.3% YoY.
Oil
Oil prices rose slightly on Tuesday, supported by optimistic statements from Saudi Arabia, which regularly fulfills its obligations under the OPEC agreement and is trying to accelerate the process of reducing exports. Additional support is provided by supply disruptions from Venezuela, where there are problems with electricity supply. The report on oil reserves of the American Petroleum Institute (API), published on Tuesday, indicated a decrease in reserves by 2.58 million barrels after rising by 7.29 million over the previous period. On March 13, investors expect the publication of the final report on oil reserves in the USA from the Department of Energy.