The Euro is retreating again. Overview for 14.11.2019

14.11.2019

On Thursday, the major currency pair remains under pressure because of uncertainty in the US-China trade talks. 

EURUSD continues falling while investors are waiting for news relating to the US-China trade agreement. The current quote for the instrument is 1.1000.

The trade talks between the USA and China remain “up in the air” and that’s a very negative moment for market players. The agreement may be signed at any moment, but it’s obvious that there are still some nuances that may interfere. For example, there is no consensus relating to intellectual property rights so far. Moreover, China hasn’t yet decided on the amount of agricultural commodities to be bought from the USA. Washington is pushing in both these aspects and offering a theoretical decrease in its import fees in return. Overall, everything remains the same: the USA is intending to hold out for more favorable terms for itself, while China doesn’t want to cave in. Investors are waiting of course, because there is nothing more they can do. 

The statistics published yesterday showed that the CPI in the USA added 0.4% m/m in October, although it was expected to expand by 0.3% m/m. The month before, the indicator didn’t change at all. The country’s economy is evidently no longer waiting for a recession, and that’s good. 

The components of the report show that energy prices jumped 2.7%, while medical care and food prices rose by the most in more than three years. On YoY, the CPI added 1.8% in October after showing 1.7% in the previous month. For the USD, a natural increase in inflation towards the target of 2.0% is a very good sign. 

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