EUR / USD
The European currency is showing near-zero dynamics in pairing with the US dollar during the Asian session, consolidating near local highs since May 26 and waiting for new drivers to appear on the market. On the eve of the euro showed a steady growth, which was partly due to the closed markets in the US. The instrument was additionally supported by positive statistics from the Eurozone and Germany. Thus, the volume of consumer lending in the euro area in April increased by 3.8% y / y after increasing by 3.3% y / y in March. Analysts expected the positive dynamics to accelerate, but expected only + 3.5% y / y. Data from Germany showed a rise in consumer inflation. In May, the consumer price index rose by 0.5% m / m and 2.5% y / y, which turned out to be better than analysts’ expectations (0.3% m / m and 2.4% y / y). Investors are now focusing on a block of statistics on consumer inflation in the euro area. Also, the April report on the unemployment rate will be released.
GBP / USD
The British pound is showing moderate gains against the US dollar in the morning session, building on the correctional momentum that had formed the day before and renewing record highs since April 2018. Despite the closed markets in the US and UK on Monday, the activity of traders remains quite high, which is associated with the expectations of a large number of macroeconomic publications (primarily from the US). At the same time, analysts are still negative about the near-term prospects of the US Federal Reserve’s monetary policy, not expecting that strong statistics of the current week will help the regulator determine the approximate timeframe for curtailing stimulus programs. Moreover, at the end of last week, US President Joe Biden presented a new large-scale plan to modernize national infrastructure, which will require a significant increase in budgetary spending. Markit’s UK Manufacturing PMI for May will be released today during the day and Bank of England Governor Andrew Bailey will deliver a speech.
NZD / USD
The New Zealand dollar is strengthening against the US currency in the Asian session, recovering from the “bearish” end of the last week. Investors are awaiting the publication of a large block of macroeconomic statistics from the United States, centered on Friday’s report on the US labor market, which analysts hope will help the US Federal Reserve to develop a strategy to smoothly reduce existing stimuli. Today the focus is on the May business activity statistics from Markit and ISM. In addition, the markets are awaiting a speech by Lal Brainard, a member of the US Federal Reserve Open Market Committee. In turn, a more confident growth of the instrument on Tuesday was hampered by not the most confident macroeconomic statistics from New Zealand. Thus, the number of issued building permits slowed sharply in April from + 19.2% m / m to + 4.8% m / m, which turned out to be worse than analysts’ average expectations.
USD / JPY
The US dollar develops a downward trend in pairing with the Japanese yen during trading in Asia, updating local lows since May 27 and testing the level of 109.50 for a breakdown downward. The American currency remains under moderate pressure, but expects the release of a large number of macroeconomic publications, which may allow the buying sentiment to strengthen. In the meantime, investors are winning back data from Japan. Thus, the PMI index in the manufacturing sector from Jibun Bank in May rose from 52.5 to 53 points, which turned out to be better than analysts’ expectations. At the same time, capital expenditures in 1Q2021 decreased by 7.8% qoq after falling by 4.8% qoq over the previous period. Analysts predicted a 9% qoq contraction.
XAU / USD
Gold prices continue their upward rally in the market, renewing their highs since the beginning of the year and again trying to gain a foothold above the psychological mark of 1900.00. The US dollar, in the absence of new drivers and interesting macroeconomic statistics, is still under pressure from rising inflation. In addition, markets are perplexed by the proposal for structural reforms put forward by President Joe Biden, which, among other things, will require a sharp increase in budget spending and lead to another surge in inflationary pressures. The instrument is additionally supported by the downward trends in the yield on 10-year US Treasury bonds.
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