On Tuesday, the US dollar slightly surrendered its positions amid renewed negotiations between Beijing and Washington on mutual trade, as well as rising hopes that an acceptable agreement would be reached between Great Britain and the EU on Brexit.
The States and China resumed negotiations on the eve of the G-20 summit to be held in Buenos Aires, Brazil at the end of this month. So far, the negotiations that have begun have no effect on the stock markets in America and China. The states closed on a minor note on Tuesday, and the Chinese market today does not demonstrate an unambiguous dynamic. Everything points to the fact that investors are no longer going to simply react to the news itself, which has already been actually won back. They want, it seems, to see the result or some significant shift in their positions on trade, and first of all, the American one.
The news about some breakthrough in the negotiation process on Brexit, splashed onto the market by Bloomberg, supported the course of the British currency, and with the European. Recently, the markets have been very active in responding to this kind of stuffing, which, however, as events have shown, turned out to be empty hopes. It's hard to say if these will be truly real, but if it turns out that the British managed to beg for more or less acceptable conditions for leaving the European Union, then this will be a strong supporting factor for the sterling rate, and, of course, this positive will not avoid Eurocurrency.
Strange fall in crude oil prices, oddly enough, did not have a noticeably strong impact on commodity currencies. In our opinion, this can first of all be explained by the local weakening of the dollar in the Forex market, which has smoothed the negative effect.
Today, the market will focus on the publication of GDP data in Germany and the Eurozone, as well as consumer inflation in Britain and the United States. It can be assumed that if the GDP values in Germany and in the euro zone show a slowdown, this may have a negative impact on the euro rate, but the acceleration of inflation in the UK and the United States may support the sterling and US dollar rates.
Forecast of the day:
The currency pair EUR / USD is trading below the level of 1.1300. It may again be under pressure if the GDP data in Germany and the Eurozone shows a decline in growth. On this wave, the pair, most likely, failing to consolidate above 1.1300, again resumed its decline to 1.1150.
The currency pair GBP / USD is trading above the level of 1.2975. If the data on consumer inflation in Britain disappoint, and in the United States will be strong, this will cause the pair to turn around and fall to 1.2840.
