Wednesday morning does not bring any significant decisions on the currency market, and trade in Asia has passed with less volatility. The main currency pairs did not fluctuate by more than 0.13 percent. The currency that seems to lose the most in the morning is the New Zealand dollar (-0.13%), while the euro and yen are close to yesterday`s close in relation to the US dollar.
USD has not set any direction during the Asian session. It seems that investors are waiting for the US Federal Reserve minutes (at 20:00) and the speech of the President of the European Central Bank, Mario Draghi (9:30 am). Even information coming from the US regarding the further possibility of entering Chinese companies into so-called the black list did not lead to a major change in the markets. Only the yen made up for some of the previous losses, when it was sold off with a slight improvement in the risk sentiment.
The black list assumes that companies entered on it can not buy technologies or components from US companies without the consent of the US government. According to the Bloomberg agency, the US is considering cutting off the flow of American technology to five Chinese companies, including expanding the list of global leaders in video surveillance.
Meanwhile, the British pound is still under pressure, and the GBP / USD is on the 4-month low. According to the latest information, Theresa May may finally stop pushing her brexit plan and give up the role of prime minister in a few days. Senior government officials were shocked that Prime Minister Theresa May's new offer to leave the EU was so badly received.
The situation is exacerbated by the fact that the Nigel Farage Brexit Party, according to the Sporting Index bookmaker, will probably dominate the upcoming European elections in Great Britain. According to her calculations, the anti-EU party will win 28 seats. Conservatives, Prime Minister Theresa May, win 7, and the Labor Party 13. On the other hand, non-policy factors are worth noting the UK inflation data released today at 10:30.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal Opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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