Fundamental analytics

At Wall-Street start the day, USD dollar displayed some weakness

On Thursday, global markets are traded in conditions of geopolitical uncertainty and fears of an economic slowdown. News that Canada arrested Huawei’s CFO, allegedly for violating the embargo against Iran, caused an almost immediate wave of risk, increasing losses in equities, bond yields, supporting the dollar against most currencies, with the exception of the Japanese yen and the Swiss franc. Oil prices are losing profits earlier in the week amid some skepticism that OPEC will agree to cut production to stabilize the market.

The global decline in yields and stock market supports the Japanese yen to new highs in a week. Yesterday's dollar growth above JPY113 was played back today, and the dollar fell slightly below JPY112. The gold market continues to trade highly in the green. After the market found support near the local level of 1233, today at the start of the American session, gold again approached the highs of autumn, the zone 1241-1243.

Brexit continues to have a great influence on the trading of the British currency and the British stock market. The interesting reason for the last week is that experts record an increase in the likelihood that the UK will not leave the EU. One major US bank has increased its subjective chances of the UK, not going up to 40%.

In addition to Brexit, another important issue for investors is the economic strength ahead of the ECB meeting next week. Earlier today, Germany reported on its third consecutive increase in factory orders, and this reinforces the feeling that the eurozone's largest economy is coming out of a slow patch, in which an economic contract was concluded in the third quarter. However, the economic momentum is weak. Production orders rose by 0.3% in October, but September revenue was reduced to 0.1% from 0.3%, and compared to the previous year, the decrease actually increased to -2.7% from a revised -2.6% ( initially -2.2%).

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