US-China trade hopes remain the main driver for the market. Let’s see the way the sentiment is changing during the European session. The European currency is giving in to the US dollar. The most traded currency pair has slumped to its 2-week low of 1.1025 and is now trying to break through the psychological level of 1.10. Despite the upbeat macroeconomic statistics released by European statistical agencies today, sellers are still setting the tone for the euro/dollar pair. Germany, one of the most export-oriented economies in the world, recorded a wider surplus of 21.2 billion euros in September against 16.5 billion in the previous month. The figure exceeded the forecast of analysts. Besides, economists cheered improvement in both imports and exports. On an annual basis, imports increased by 1.3%, while exports rose by 4.6%. Oddly enough, the reports did not spark a trend change and market participants closed long deals on the euro/dollar pair ahead of the weekend. Instead, traders attach more importance to the likelihood that the European Central Bank is due to cut interest rates, since the euro area economic growth is still sluggish, while inflation is growing extremely slowly. Traders have the same sentiment on the pound/dollar pair. After two members of the Monetary Policy Committee advocated for a 0.25% rate cut at yesterday’s meeting of the Bank of England, the pound/dollar pair is extending weakness. Today, it has hit its 2-week low of 1.2800. Amid growing optimism about end to US-China disputes, safe-haven assets, including gold, are falling in value. At the end of the trading week, the precious metal tumbled and settled down at the level of $1,455 per troy ounce. We keep close tabs on the market
evelopments. Stay tuned and watch new videos!