EUR / USD
The European currency is consolidating against the US dollar during today’s Asian session, stopping its growth and not reaching the psychological level of 1.2000. The reason for the weakening of the “bullish” impulse was not the most confident macroeconomic publications from the eurozone, as well as the speech of the head of the European Central Bank (ECB) Christine Lagarde, who compared the region’s economy with a “sick with two crutches”, where the “crutches” are fiscal and monetary measures support. Thus, the European regulator again makes it clear that the policy of soft monetary conditions will persist for a long time, especially since inflation in the region, unlike in the United States, does not show alarming signs of too rapid growth. Macroeconomic data, in turn, reflected a fall in industrial production in the eurozone in February by 1% m / m and 1.6% y / y after rising by 0.8% m / m and 0.1% y / y in January. …
GBP / USD
The British pound is slightly declining against the US dollar in trading this morning session, retreating from the local highs since April 7, updated the day before. Some support for the American currency on Wednesday was provided by a very optimistic speech by the head of the US Federal Reserve, Jerome Powell, who tried to support the markets, worried about the too rapid rise in prices in the country. The regulator will continue to monitor the situation on the labor market and the dynamics of inflation in order to adjust the vector of monetary policy, however, it may begin to reduce the volume of the quantitative easing program a little earlier than originally planned, since the pace of economic recovery exceeds forecasts. The focus of investors today will be statistics from the United States on the dynamics of retail sales and the level of business activity in the manufacturing sectors of the Federal Reserve Bank of New York and Philadelphia.
AUD / USD
The Australian dollar is showing a moderate decline in pairing with the US currency in trading in today’s Asian session, retreating from local highs since March 23 and preparing to test the 0.7700 mark for a breakdown downward. The tool does not respond to the publication of strong enough data from Australia in the March labor market report. Thus, the employment level in March increased by 70.7 thousand jobs, which turned out to be significantly better than market expectations at 35 thousand. At the same time, the February indicator indicated an increase of 88.7 thousand. Full employment decreased by 20.8 thousand, so that positive dynamics is due only to the growth of part-time employment. The unemployment rate in March fell from 5.8% to 5.6%, which also turned out to be better than analysts’ forecasts of a reduction to 5.7%.
USD / JPY
The US dollar shows mixed trading dynamics against the Japanese yen in today’s trading in Asia, consolidating near the local lows since March 25, updated the day before. The positions of the American currency are gradually strengthening at the end of the week, which, in addition to the technical factors of correction, is facilitated by yesterday’s speech by the US Federal Reserve Chairman Jerome Powell. The head of the regulator hinted at a possible tightening of the monetary policy of the earlier designated dates, but so far it is only a matter of reducing the volume of the quantitative easing program. The yen, in turn, reacts cautiously to alarming statistics on the dynamics of morbidity in Japan. At the end of April 14, the country’s authorities announced the identification of over 4 thousand new cases of coronavirus infection, which is comparable to the growth rate at the beginning of the year, when a state of emergency was introduced in a number of prefectures. Local medical associations are calling for a return to restrictive measures, as the situation is compounded by the approaching series of national holidays in late April and early May.
XAU / USD
Gold prices are slightly increasing in trading in today’s Asian session, reluctantly recovering from the decline the day before, due to the growth in stock markets. In turn, the instrument is still supported by not the strongest positions of the American currency, as well as the recent statistics from the US on the dynamics of industrial and consumer inflation. As expected, the rate of inflation in the US continues to renew its record highs, which causes concern for investors who are unhappy with the wait-and-see attitude of the US Federal Reserve. One way or another, high inflation rates triggered a short-term drop in US Treasury yields, which provided additional support for gold.
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