Despite the fact that today is the last day of the month, the market remains very volatile. At the same time, the situation on the market has changed significantly in comparison with what we saw throughout October. Yesterday, safe-haven assets received a strong stimulus for growth after the US Federal Reserve cut the interest rate. At the same time, the Fed has not given clear signals that this is the last rate cut, so this question remains open, and this means that the market will operate in conditions of uncertainty until at least December. In addition, it became known that the meeting of the representatives of China and Donald Trump in Chile in November will not take place because Chile refuses to hold the summit. Therefore, this event can be postponed to a later date and delays the possibility of concluding a trade deal indefinitely.
Today can be called the day of the JPY, which received support as a safe asset and also thanks to this week's macroeconomic reports. As it became known, the volume of industrial production output in Japan rose in September by 1.4%, which is almost 4 times higher than forecasted. Business activity in China declined more than expected, which once again was in favor of the JPY and other safe assets.
The euro strengthened due to the weakening of the dollar, but macroeconomic reports within the EU do not contribute to this: unemployment in September remained at 7.5%, although it was expected to decrease by 0.1%. The euro continues to be under pressure due to the uncertainty with Brexit and the economic downturn in the eurozone.
In the second half of the day we expect a series of important reports from the United States and Canada. From the US, we expect data on the number of applications for unemployment benefits, the labor cost index, and the PMI index of business activity in Chicago. Today, Canada will publish data on the GDP in August and the price index for raw materials. Thus, today is a good time for new profitable deals.
