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Market Reviews 10 Dec 2021

Market Reviews 10 Dec 2021

EUR/USD


European currency showcased enigmatic trading movements against the US dollar within the Asian session, consolidating close to the 1.1300 after a sudden decline the previous trading day. The pressure built on the single currency the previous day was emphasized by not the strongest macroeconomic statistics from Germany, and also a step more tightening of the American currency, that is secured against extra support from the data published on claims of unemployment. 

The statistics of previous unemployment Claims for the week ended December 3 went down from 227K to 184K, which turned out to be significantly better than predicted movements’ at the level of 215K. Strong data upon the labor market that serve as an extra contradictory in favor of a quick cut in the quantitative easing program from the US Fed. Nonetheless, investors are in no rush to jump up on the result and chose to see for today’s announcement of November statistics on US consumer inflation. Germany will be showcasing its expense and income data by the end of the week. And also within the day, there will be speeches given by the President of the European Central Bank named Christine Lagarde, and two other representatives of the regulator, Fabio Panetta, and Frank Elderson.

GBP/USD

The British pound is trading with combined dynamics against the US currency within the morning session, staying very near to the annual downward movement, which GBP/USD rejuvenated on another day. The position of the currency pound will remain under constant pressure among alarming statistics within the rise in the UK. 

Considering this, the authorities are carefully introducing prohibitive measures. Within the previous week, the government denied the need of remaining in masks indoors, Prime Minister Boris Johnson is now announcing recommendations for remote control for a few employees. Today, investors will be focusing upon macroeconomic statistics published from the UK about GDP and industrial production for October. Market forecasts are rather constrained and suggest a slowdown in British economic growth from the rate of 0.6% in September to the rate of 0.4% in October.

AUD/USD

The Australian dollar is showcasing flat trading performance against the US dollar within the morning trading session, consolidating and combining at 0.7150. The previous trading day, the quotes of AUD/USD showcased a slight decline, breaking the record of a three-day “bullish” rally and retreating from the local highs of November 26. 

During this time, the market sentiment was supported by a little bit of optimistic macroeconomic statistics published from China. The Consumer Price Index increased to the rate of 0.4% in November after rising at the rate of 0.7% in October. 

The predictions of the market assumed a decline to 0.3%. In annual terms, inflation increased upwards from 1.5% to 2.3%, but also fell short of analysts’ expectations within 2.5%. At present all market attention will be emphasizing upon data of consumer inflation in the United States. The Consumer Price Index is forecasted to show all the more YoY growth in November, reaching 6.8% after rising 6.2% in October. In monthly terms, the rate of inflation growth may decline a little bit from 0.9% to 0.7%.

USD/JPY

The US dollar is showing almost no movements as compared to the Japanese yen within trading in Asia, consolidating and combining close to the113.50. The previous trading day, the dollar showcased a slight decline, which was happening basically by technical factors. Traders are trying to fix their profits at the end of the week, and are also gearing up to analyze data published on consumer inflation from the United States, which will be published today. 

Strong data, which will assure future growth in price hike pressures, will be another argument in favor of strict monetary policy by the US Fed during the next sitting, which will take place in the next week. In addition to the American regulator, the Bank of England, the European Central Bank, as well as the central bank of Norway will also hold their meetings. Some strong favor for the yen today is provided by upward statistics on inflation in the manufacturing sector. The Producer Price Index in November also showed upward movement by 0.6%, which proved opposite and better than the market predictions. The domestic price index for corporate goods rose to 9% after rising 8% in October.

XAU/USD

Gold prices have shown a sudden rise within the Asian trading session, trying to recover after a little bit of decline the previous trading day. Instrument quotes are performing under pressure among strong and active strengthening of the dollar before today’s release of inflation statistics in the US.

Investors are hoping that the published data will not leave any scope for the US Fed to call a neutral position on the issue of reducing the present support measures within the next meeting, which will take place next week. On the other hand, favor for gold is provided by the constant risks about the rise in the incidence of coronavirus. In particular, analysts are closely following the news from the UK, where, in response to the rise in the number of infections, the authorities have no option other than returning part of the restrictive measures.

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