The state of the Asian market: the market is inactive

Trading in the Asian session is relatively calm and without a clearly expressed dynamics. The restraint trading is due to the ambiguous dynamics of the stock indices of the Asia-Pacific region and the expectation of the upcoming news. Also, at the beginning of the day it became known about the next launch of the North Korea ballistic missile. This news was perceived by the market in a quite cool manner, but strengthened the correction of the stock indices.

The US currency is trading quite restrained on Wednesday after a noticeable rise yesterday based on positive US statistics. The US dollar index remains in the correction phase after a significant decline, but is limited to the level of 93.400 and the existing range. Also, do not forget about the upcoming data on the US and the preservation of risks relative to the tax reform and the new president of the Fed.

The British pound is trading with the strengthening after a dramatic rise yesterday based on data on the financial settlement of Brexit. So, the cost of divorce of the UK and the EU will be from 45 billion pounds to 55 billion pounds. This news pointed to a significant advancement of negotiations between the EU and the UK, which caused widespread strengthen of the pound.

At the moment, the pound remains near the weekly highs against the American, the euro and the yen. Thus remaining in a significant overbought zone and waiting for new details on the negotiations on Brexit.

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Hanzenko Anton