On Tuesday, we have observed the growth of optimism on the market. Investors expect that before the end of the month, China and the United States will sign some agreement that will lead to the abolition of previously imposed duties for a long period. Therefore, since the morning, safe assets have been under pressure, while commodity currencies and risky assets are rising in price. Even disappointing data on business activity in the services sector in China did not change the situation. The Australian dollar strengthened the most, taking into account the results of the RBA meeting, which left the rate at the current level. According to analysts, the RBA is unlikely to revise the rate by the end of the year, but may reduce it next year at least once. Perhaps the end of the trade conflict will change their plans, provided that the deal could really end the conflict.
In the EU today we only expect the publication of the PMI index of business activity in the UK's services sector which unexpectedly exceeded the forecasts and reached the psychological mark of 50 points in October - an impressive result for the British economy, given the uncertainty with Brexit.
In the afternoon, investors expect data on the trade balance in the United States and Canada, data on business activity in the United States and the number of open vacancies. Therefore, volatility will be very high today.
