EURUSD
The European currency shows flat trading dynamics, consolidating near 0.9950 and updating local highs from October 5. Yesterday, the pair EUR/USD showed a fairly active growth, which was due to a sharp correction in the US currency in response to the publication of disappointing statistics. The Housing Price Index in the US in August fell by 0.7% after falling by 0.6% in the previous month, while analysts' forecasts assumed a value of -0.3%. S&P/Case-Shiller Home Price Index fell from 16.0% to 13.1% YoY, which was worse than the expected 14.4%, and also became the most significant slowdown in the index on record. Analysts believe that the negative dynamics will be reflected in the monetary policy of the US Federal Reserve. Despite a sharp decline in home prices, activity in the real estate market is yet to recover, as mortgage rates have alienated potential buyers, who are now more focused on meeting basic needs. In turn, some support for the euro on Tuesday was provided by data from Germany, where the index of Business Climate from the Institute for Economic Research (IFO) corrected from 84.4 points to 84.3 points in October, while expectations were at 83.3 points. The indicator for Current Assessment, in turn, decreased from 94.5 points to 94.1 points, with the forecast for a fall to 92.4 points, and the index of Economic Expectations increased from 75.3 points to 75.6 points, while analysts assumed its correction to 75.0 points.
GBPUSD
The pound is traded in different directions during morning trading, holding close to 1.1450 and updating local highs from September 15. Against the background of a noticeable weakening of the American currency the day before in response to the publication of weak data on the dynamics of housing prices, the GBP/USD pair was approaching 1.1500, but further growth of the instrument was held back by the uncertainty of the economic policy of the new British Prime Minister Rishi Sunak. The official is expected to stick to the traditional course, but the new cabinet of ministers will have to overcome significant problems in the economy, as well as achieve unity in political views. Some experts believe that soon the UK markets will return to negative trends, and the pound will lose its gained positions, unless a real plan is presented to change the situation in the face of a budget deficit of 40.0 billion pounds, high inflation and rising living costs. The UK mid-term budget is expected to be presented before the end of October. Moderate pressure on the position of the pound is still exerted by weak macroeconomic statistics released at the beginning of the week. The index of business activity in the UK Services sector from S&P Global in October showed a decrease from 50.0 points to 47.5 points, while the Manufacturing PMI fell from 48.4 points to 45.8 points, which also turned out to be worse than the expected 48.0 points.
XAUUSD
Gold prices show insignificant growth, testing the level of 1655.00 for a breakout. The quotes of the precious metal are supported by the weakening of the US currency in response to the release of not the most confident statistical reports from the US. In turn, the markets expect further tightening of monetary policy by the world's leading central banks, including the US Federal Reserve. In addition, the Bank of Canada will announce its interest rate decision today, and the European Central Bank (ECB) will do it on Thursday. In both cases, an increase of 75 basis points is expected. At the same time, fears are growing in the market regarding the imminent revision of monetary policy by leading regulators. In particular, negative macroeconomic statistics were released in the US the day before, which pointed to a record drop in housing prices in October from 16.0% to 13.1%. Today, investors are waiting for the publication of data on the dynamics of New Home Sales in the US in September. Current forecasts suggest a sharp decline of 13.9% after rising 28.8% in the previous month.
