News

USA

The US currency is weakening against the euro today and has mixed dynamics in pairs with the yen and the pound.

In the spotlight – statistics on US trade. In February, the trade deficit decreased from 51.10 to 49.40 billion dollars. Exports increased by 1.1%, and imports – by 0.2%. The trade deficit with China decreased to $30.1 billion. Reducing the US trade deficit with China was one of the main goals of the US-China trade negotiations. A further decrease will bring closer the trade deal between the PRC and the United States.

Eurozone

The European currency is strengthenimg today against its main competitors: the US dollar, the pound and the yen.

The euro is supported by the data on China's GDP in the first quarter of this year. The YoY indicator remained at the same level of 6.4%, while the market expected it to decline to 6.3%. Growth in industrial production and retail sales in the PRC also exceeded market expectations. Industrial production increased from 5.3% to 8.5%, and retail sales from 8.2% to 8.7%. On the other hand, negative data from Germany, whose Ministry of Economy reduced GDP growth estimates, put pressure on the euro. The data on inflation in the Eurozone published today remained unchanged: in March, the consumer price index was 1.4%, and the core CPI was 0.8%.

Great Britain

The British currency today is weakening against the euro and has mixed dynamics in pairs with the US dollar and the yen.

The UK inflation data for March is in the spotlight. The core CPI remained unchanged at 1.8%. The general CPI also remained at the same level of 1.9%. The rising fuel prices were offset by lowering food prices. However, there is a slowdown in housing prices. On average in the country they grew by only 0.6% in March, while in London they decreased by 3.8%. Experts attribute this to the uncertainty around Brexit and the significant reduction in tax incentives for landlords with the further right to purchase the housing.

Japan

The Japanese currency is weakening today against the euro and has mixed dynamics in pairs with the pound and the US dollar.

Negotiations between Japan and the United States are in the spotlight, as well as economic statistics. The February data on the volume of industrial production in Japan published today showed a slowdown from 1.4% to 0.7%. In March, the volume of Japanese exports declined for the fourth time in a row, but less than expected – by 2.4%. The volume of imports increased by 1.1%, and the trade balance increased to 528.5 billion yen. At the same time, exports of goods to China decreased by 9.4%, supplies to the EU increased by 7.3%, and to the US – by 4.4%. The reducing of US deficit in trade with Japan is central to the US-Japan talks going on in Washington. Currently, the parties are discussing trade in agricultural products, cars, as well as e-commerce between the two countries.

Australia

The Australian dollar is strengthening today against its main competitors: the euro, the American dollar, the pound and the yen.

Australian currency is strengthening due to the good economic data from China. The country's GDP in the first quarter grew by 6.4%, while investors expected growth of 6.3%. Industrial production in China in March increased by 8.5%, retail sales – by 8.7%, and investments – by 6.3%. Experts believe that favourable statistics are related to the national support measures. On the other hand it is expected that the unemployment rate in Australia in March could rise from 4.9% to 5.0%, and the employment change from 4.6K to 12.0K.

Oil

Today, oil prices continue to rise moderately.

The prices are supported by the API report, according to which oil reserves in US dropped by 3.096 million barrels. At the same time, gasoline inventories fell by 3.560 million barrels, while distillate stocks rose by 2.330 million barrels.

A further increase in oil prices may be under threat if OPEC countries don’t agree to extend the OPEC+ treaty. Summit of the cartel starts today in Vienna. The parties have not yet come to a common opinion. Saudi Arabia and Iran are in favor of extending the limitation of oil production in order to raise prices up to $80 per barrel. Russia opposes such decision out of fears that US oil will have a significant market share in this case.

Tonight investors are waiting for the EIA report. According to the forecast, oil reserves can be reduced by 1.200 million barrels, which will support oil prices.