Today is expected to be an average volatility day. At present, the focus of investors remains on the trade conflict between China and the US, as well as the EU, where the Eurogroup meeting is expected, as well as the meeting of the Bank of England.
The day also began with data on the trade balance in Australia, the surplus of which grew more than expected. However, this did not change the value of the AUD, which is under pressure today due to the high probability of postponing the conclusion of the trade deal between China and the United States in December because the two cannot agree on the venue of the meeting.
The Bank of England is not expected to change the rate or its monetary policy. Most likely, the regulator will take a wait-and-see position at least until the parliamentary elections on December 12.
The report on industrial production published today reminded investors about the weakness of the EU economy, so the euro is under pressure today. Safe-haven assets, which have been under pressure recently, are able to recover today.
In the second half of the day we expect the publication of data on the number of applications for unemployment benefits in the USA. The US market is entering a period of calm, when no key data on the US economy will be published. Therefore, the value of the USD will mainly be influenced only by external factors and the level of demand for risky assets.
