USD and EURGBP Rises on Month-End Demand, Italy Stagnates - US Market Open
MARKET DEVELOPMENT – MONTH-END SPURS USD AND EURGBP DEMAND
EUR: The first insight into Q3 growth in the Eurozone showed a drop to 1.7% from 2.1%, falling below estimates of 1.8%, with a quarterly rise of 0.2%. Elsewhere, Italian GDP stagnated in the third quarter, providing a blow to the Italian government, whose growth projections seem optimistic. However, it does strengthen their case that they need an expansive budget to support growth. EUR initially softer as growth slows, although, rising German inflation has helped curb further losses. 1.13 remains the key support level on the downside, while resistance is situated at 1.14, before 1.1430. Elsewhere, the Euro is outperforming the Pound, given the usual month-end demand with the cross now back above the 0.89 handle.
USD: The US Dollar continues to track higher, having taken out last week’s high, the Dollar looks to move towards the YTD peak. Short term drivers support with month-end flows increasing USD demand.
AUD: The Australian Dollar is the notable outperformer this morning amid a slight stabilisation in the Yuan (shortly after China’s market open), while talk from President Trump that the US and China can create a great deal has also added to the improved sentiment for the Aussie. However, with AUD failing to get a foothold above 0.71 and with stocks retreating, the Australian Dollar may be vulnerable to a slight pullback.
DailyFX Economic Calendar: Tuesday, October 30, 2018 – North American Releases
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--- Written by Justin McQueen, Market Analyst
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