Morning Market Review
EUR/USD
EUR shows the flat dynamics of trading against USD during today's Asian session, consolidating near 1.1300, which was achieved due to the active decline of the instrument the day before. Market sentiment worsened again after the publication of the two-day Fed meeting minutes on Wednesday. Despite the fact that the regulator left the interest rate unchanged at 0.25% and did not announce new radical measures to support the economy, the demand for safe assets has grown markedly. This was partly due to the release of updated forecasts from the Fed, which did not bode well for the US economy. An additional pressure on risky currencies is exerted by alarming reports of an increase in the incidence of coronavirus in various countries. Investors fear that a second wave of the epidemic may begin closer to the autumn, and the economy will have to close again.
GBP/USD
GBP is slightly declining against USD during today's Asian session, continuing the development of a "bearish" momentum formed the day before. Pressure on the instrument is exerted by the widespread strengthening of USD, as well as a markedly reduced interest of investors in risk. Macroeconomic statistics from the USA published on Thursday turned out to be moderately optimistic. Initial Jobless Claims for the week ending June 5 decreased from 1.897M to 1.542M, which was slightly better than market expectations of 1.550M. Continuing Jobless Claims as of May 29 also showed a downtrend from 21.268M to 20.929M with a forecast of a decrease to 20M. On Friday, investors are focused on macroeconomic statistics from the UK on the dynamics of GDP and industrial production for April. UK GDP is expected to fall by a record 18.4% in April.
AUD/USD
AUD shows ambiguous trading dynamics against USD during today's Asian session. The active decline was replaced by flat trading; the instrument is trading near 0.6850, very close to the opening point. Investors are still actively buying American currency amid a marked decline in optimism in the market. The minutes of the US Federal Reserve meeting published on Wednesday helped lower demand for risk, as they again reminded traders of the magnitude of the economic crisis that erupted against the backdrop of the COVID-19 epidemic. Additional pressure on AUD is also exerted by a slowdown in commodity markets, despite the fact that OPEC+ agreed to extend the agreement on limiting oil production until the end of July.
USD/JPY
USD shows strong growth against JPY during today's Asian session. The US currency is adding about 0.33% and is testing 107.20 for a breakout. The "bullish" dynamics of the instrument replaced the four-day downward rally, following which USD updated local lows since May 11against JPY. In addition to the widespread strengthening of USD, pressure on JPY on Friday was exerted by weak macroeconomic statistics from Japan. In April, industrial production in the country decreased by 15% YoY after a decrease of 5.2% YoY in March. In monthly terms, production collapsed by 9.8% MoM with a decrease of 3.7% MoM in March. BSI Large Manufacturing Conditions Index in Q2 2020 decreased from –17.2 to –52.3 points.
XAU/USD
Gold prices show flat dynamics during today's morning session, consolidating near 1730.00. The day before, the instrument showed negative dynamics, retreating from its local highs since June 2 against the background of widespread strengthening of USD. Additional pressure on gold was exerted by the fact that the US regulator has at the moment abandoned the idea of negative interest rates, and is inclined to take a wait and see attitude, continuing only to increase the program of quantitative easing if necessary. At the same time, the Fed's economic indicators and forecasts indicate a rather difficult situation for the American economy, which supports the demand for gold. In addition, investors are worried about the possibility of a second wave of the COVID-19 epidemic, which could force countries to return some of the restrictions before the vaccine is found.
EUR/USD
EUR shows the flat dynamics of trading against USD during today's Asian session, consolidating near 1.1300, which was achieved due to the active decline of the instrument the day before. Market sentiment worsened again after the publication of the two-day Fed meeting minutes on Wednesday. Despite the fact that the regulator left the interest rate unchanged at 0.25% and did not announce new radical measures to support the economy, the demand for safe assets has grown markedly. This was partly due to the release of updated forecasts from the Fed, which did not bode well for the US economy. An additional pressure on risky currencies is exerted by alarming reports of an increase in the incidence of coronavirus in various countries. Investors fear that a second wave of the epidemic may begin closer to the autumn, and the economy will have to close again.
GBP/USD
GBP is slightly declining against USD during today's Asian session, continuing the development of a "bearish" momentum formed the day before. Pressure on the instrument is exerted by the widespread strengthening of USD, as well as a markedly reduced interest of investors in risk. Macroeconomic statistics from the USA published on Thursday turned out to be moderately optimistic. Initial Jobless Claims for the week ending June 5 decreased from 1.897M to 1.542M, which was slightly better than market expectations of 1.550M. Continuing Jobless Claims as of May 29 also showed a downtrend from 21.268M to 20.929M with a forecast of a decrease to 20M. On Friday, investors are focused on macroeconomic statistics from the UK on the dynamics of GDP and industrial production for April. UK GDP is expected to fall by a record 18.4% in April.
AUD/USD
AUD shows ambiguous trading dynamics against USD during today's Asian session. The active decline was replaced by flat trading; the instrument is trading near 0.6850, very close to the opening point. Investors are still actively buying American currency amid a marked decline in optimism in the market. The minutes of the US Federal Reserve meeting published on Wednesday helped lower demand for risk, as they again reminded traders of the magnitude of the economic crisis that erupted against the backdrop of the COVID-19 epidemic. Additional pressure on AUD is also exerted by a slowdown in commodity markets, despite the fact that OPEC+ agreed to extend the agreement on limiting oil production until the end of July.
USD/JPY
USD shows strong growth against JPY during today's Asian session. The US currency is adding about 0.33% and is testing 107.20 for a breakout. The "bullish" dynamics of the instrument replaced the four-day downward rally, following which USD updated local lows since May 11against JPY. In addition to the widespread strengthening of USD, pressure on JPY on Friday was exerted by weak macroeconomic statistics from Japan. In April, industrial production in the country decreased by 15% YoY after a decrease of 5.2% YoY in March. In monthly terms, production collapsed by 9.8% MoM with a decrease of 3.7% MoM in March. BSI Large Manufacturing Conditions Index in Q2 2020 decreased from –17.2 to –52.3 points.
XAU/USD
Gold prices show flat dynamics during today's morning session, consolidating near 1730.00. The day before, the instrument showed negative dynamics, retreating from its local highs since June 2 against the background of widespread strengthening of USD. Additional pressure on gold was exerted by the fact that the US regulator has at the moment abandoned the idea of negative interest rates, and is inclined to take a wait and see attitude, continuing only to increase the program of quantitative easing if necessary. At the same time, the Fed's economic indicators and forecasts indicate a rather difficult situation for the American economy, which supports the demand for gold. In addition, investors are worried about the possibility of a second wave of the COVID-19 epidemic, which could force countries to return some of the restrictions before the vaccine is found.