EUR/USD
EUR declines against USD during today's Asian session, returning to a downtrend after the opening with the rising gap against the backdrop of an unexpected reduction in the interest rate by the Fed to zero. In an effort to help a weakening economy, the US regulator lowered its key rate range to 0.00–0.25%, and also announced that it would increase its balance sheet to USD 700B. In addition, at the end of last week, US President Donald Trump announced the introduction of a state of emergency in the US, which will allow the country to attract additional investments on the ground and increase funding for the program to combat the epidemic. The ECB also seeks to create additional support for the economy. Despite the fact that at its last meeting, the European regulator did not change the rate parameters, the EU intends to create a special fund in the amount of EUR 37B, and also guarantees support for small and medium-sized businesses through the issuance of loans in the amount of EUR 8B.
GBP/USD
GBP is again trading with a downtrend paired with USD, approaching the previous local lows, updated at the end of last week. GBP, like many other currencies, opened on Monday with a noticeable increase, which was caused by an unexpected decrease in the interest rate of the Fed immediately by 100 basis points. However, despite the unprecedented measures that the US government is taking to curb the negative effects of coronavirus, demand for USD remains very high, as investors fear a negative scenario. Today's macroeconomic statistics from the UK got lost amid news from the United States. However, Rightmove House Price Index in March rose by 1.0% MoM, accelerating after rising by 0.8% MoM. In annual terms, the indicator grew by 3.5% YoY after an increase of 2.9% YoY in the previous month. Traders are awaiting the publication of the February report on the UK labor market, which is due to appear on Tuesday.
NZD/USD
NZD is falling against USD during today's Asian session, returning to the lows of last Friday after the opening with the gap up due to a sharp interest rate cut by the US Federal Reserve. The American regulator did not wait for the scheduled meeting at the end of the month and announced the most decisive measures to support the national economy, trying to minimize the damage from the further spread of the coronavirus epidemic. Macroeconomic statistics released this morning have been mixed. Investors were disappointed with the Chinese data on retail sales and industrial production, but were optimistic about the statistics on the number of Visitor Arrivals in New Zealand in January, reflecting an increase in the indicator (it is obvious that in the coming months the tourist flow will noticeably decrease). Industrial production in China fell by 13.5% YoY in February, after rising by 6.9% YoY last month. Analysts had expected positive dynamics to remain at 1.5% YoY. Retail Sales went down by 20.5% YoY after rising by 8% YoY in January. Forecasts suggested an increase of 0.8% YoY.
USD/JPY
USD shows ambiguous dynamics against JPY during today's Asian session, trading near the opening level at 107.00. Investors take a lead from a sudden decision of the US Fed to lower interest rates to zero, which should help a weakening global economy amid the further spread of the coronavirus epidemic. Other leading regulators come forward with similar measures. Earlier, the Bank of Japan announced a new program of purchases of government bonds worth JPY 200B, and also announced the issuance of JPY 1.5T of short-term loans for small and medium-sized businesses. Moderate support for JPY at the beginning of the week is provided by macroeconomic statistics published in Japan. Machinery Orders in January grew by 2.9% MoM after a decrease of 12.5% MoM last month. Analysts had expected negative dynamics to remain at –1.6% MoM. In annual terms, the decline slowed from –3.5% YoY to –0.3% YoY, which also turned out to be better than forecast of –0.5% YoY.
XAU/USD
Gold prices are falling during today's Asian session, gradually returning to the levels of the end of last week, when the instrument recorded a strong decline and updated local lows of the end of December 2019. Gold, like many other assets paired with USD, showed a positive gap at the opening of trading of the new week, which was caused by extremely aggressive measures of support for the national economy by the US Fed. Without waiting for the scheduled meeting, the regulator announced a reduction in interest rates to zero, which, coupled with unprecedented support of USD 1.5T, should significantly help the national and global economy.
EUR declines against USD during today's Asian session, returning to a downtrend after the opening with the rising gap against the backdrop of an unexpected reduction in the interest rate by the Fed to zero. In an effort to help a weakening economy, the US regulator lowered its key rate range to 0.00–0.25%, and also announced that it would increase its balance sheet to USD 700B. In addition, at the end of last week, US President Donald Trump announced the introduction of a state of emergency in the US, which will allow the country to attract additional investments on the ground and increase funding for the program to combat the epidemic. The ECB also seeks to create additional support for the economy. Despite the fact that at its last meeting, the European regulator did not change the rate parameters, the EU intends to create a special fund in the amount of EUR 37B, and also guarantees support for small and medium-sized businesses through the issuance of loans in the amount of EUR 8B.
GBP/USD
GBP is again trading with a downtrend paired with USD, approaching the previous local lows, updated at the end of last week. GBP, like many other currencies, opened on Monday with a noticeable increase, which was caused by an unexpected decrease in the interest rate of the Fed immediately by 100 basis points. However, despite the unprecedented measures that the US government is taking to curb the negative effects of coronavirus, demand for USD remains very high, as investors fear a negative scenario. Today's macroeconomic statistics from the UK got lost amid news from the United States. However, Rightmove House Price Index in March rose by 1.0% MoM, accelerating after rising by 0.8% MoM. In annual terms, the indicator grew by 3.5% YoY after an increase of 2.9% YoY in the previous month. Traders are awaiting the publication of the February report on the UK labor market, which is due to appear on Tuesday.
NZD/USD
NZD is falling against USD during today's Asian session, returning to the lows of last Friday after the opening with the gap up due to a sharp interest rate cut by the US Federal Reserve. The American regulator did not wait for the scheduled meeting at the end of the month and announced the most decisive measures to support the national economy, trying to minimize the damage from the further spread of the coronavirus epidemic. Macroeconomic statistics released this morning have been mixed. Investors were disappointed with the Chinese data on retail sales and industrial production, but were optimistic about the statistics on the number of Visitor Arrivals in New Zealand in January, reflecting an increase in the indicator (it is obvious that in the coming months the tourist flow will noticeably decrease). Industrial production in China fell by 13.5% YoY in February, after rising by 6.9% YoY last month. Analysts had expected positive dynamics to remain at 1.5% YoY. Retail Sales went down by 20.5% YoY after rising by 8% YoY in January. Forecasts suggested an increase of 0.8% YoY.
USD/JPY
USD shows ambiguous dynamics against JPY during today's Asian session, trading near the opening level at 107.00. Investors take a lead from a sudden decision of the US Fed to lower interest rates to zero, which should help a weakening global economy amid the further spread of the coronavirus epidemic. Other leading regulators come forward with similar measures. Earlier, the Bank of Japan announced a new program of purchases of government bonds worth JPY 200B, and also announced the issuance of JPY 1.5T of short-term loans for small and medium-sized businesses. Moderate support for JPY at the beginning of the week is provided by macroeconomic statistics published in Japan. Machinery Orders in January grew by 2.9% MoM after a decrease of 12.5% MoM last month. Analysts had expected negative dynamics to remain at –1.6% MoM. In annual terms, the decline slowed from –3.5% YoY to –0.3% YoY, which also turned out to be better than forecast of –0.5% YoY.
XAU/USD
Gold prices are falling during today's Asian session, gradually returning to the levels of the end of last week, when the instrument recorded a strong decline and updated local lows of the end of December 2019. Gold, like many other assets paired with USD, showed a positive gap at the opening of trading of the new week, which was caused by extremely aggressive measures of support for the national economy by the US Fed. Without waiting for the scheduled meeting, the regulator announced a reduction in interest rates to zero, which, coupled with unprecedented support of USD 1.5T, should significantly help the national and global economy.