Looking at the quotes is simply just boring. It feels like everyone has fallen asleep in the market. Although the representatives of the Federal Reserve System and the European Central Bank are like a marathon, they endlessly speak about some important matter. However, it seems that their speeches are so fiery that it is just right for all speakers to put babies to bed. And that from their words, traders just do not snore. As many as five representatives of the monetary authorities of the United States and the European Union, with their monotonous speeches, investors are so tired that they even overslept through American data on new home sales, which unexpectedly declined by 0.7% and sales which fell from 738 thousand to 733 thousand. At the same time, they expected growth by 1.1%. But in fairness, it should be noted that the previous data was also reviewed for the better, and in September, sales of new homes did not fall by 0.7%, but increased by 4.5%. Thus, this statistical focus somewhat offset the fact that sales declined in October.
Today’s entertainment program in terms of the epistolary genre is much more boring than yesterday, since only Lane from the European Central Bank spoke. It can be agreed that this is not the same as the speech of Powell and Brainard from the Federal Reserve System, as well as Kera, de Guindos and the same Lane from the European Central Bank, which entertained us yesterday. However, today, everything is much better with statistics, and it seems that only it can now bring investors to life. The first thing that catches our eye is the second estimate of the United States GDP for the third quarter. However, do not put too high hopes on them. The fact is that it should coincide with the first estimate, which showed a slowdown in economic growth from 2.3% to 2.0%, which market participants have long put in quotes.
GDP growth rate (United States):
However, you should not think that investors will not even have something to look at, since data on orders for durable goods all in the same United States are of great interest. Moreover, the data for September has already been reviewed for the worse, and orders then fell not by 1.1%, but by 1.2%. Well, in October, orders were to be reduced by another 0.8%. Thus, for the second month in a row, orders for durable goods are lowered. It can also be recalled that industrial production is also declining, then the data on orders directly indicate that it is not worth waiting for the growth of industrial production. Although data on applications for unemployment benefits, the total number of which should be reduced by 11 thousand, will be called upon to brighten up a dull picture. In particular, the number of initial claims for unemployment benefits may be reduced by 6 thousand, and the number of retries by another 5 thousand. Nevertheless, the overall mood is clearly not in favor of the dollar.
Durable Goods Orders (United States):
Thus, we should expect the single European currency to gradually increase to 1.1050.
The pound, in turn, will follow in the wake of the single European currency, and it may well increase to 1.2925.
The material has been provided by InstaForex Company – www.instaforex.com
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