The US dollar dropped against most major currencies, including the euro, after Friday's publication of ambiguous statistics on the labor market in the US. Nonfarm Payrolls index in June was better than expected but lower than the previous value and amounted to 213K. Unemployment rate rose from 3.8% to 4.0%. Average Hourly Earnings dropped to 0.2% MoM in June from 0.3% a month earlier. YoY the indicator remained unchanged at the level of 2.7% in June. The deterioration in the labor market and trade wars can cause FOMC members to slow down the interest rate increases hike. The pair is also supported by positive trade balance data from Germany. The proficiency of the balance increased to 20.3B euro in May against 19.4B a month earlier. Due to these factors, the pair EUR/USD grew to 1.1770.


The GBP/USD rate due to the disappointing Friday data from the US rose to 1.3310. Weak data from the UK on Halifax house prices published on Friday were ignored by the market. MoM, the Halifax index went down to 0.3% in June, and to 1.8% YoY.


Quotes of AUD/USD due to the lack of news from Australia and weak data on the labor market rose to 0.7463. Today, the macroeconomic calendar of Australia lacks important releases as well, so the movement of the rate will depend on the news from the US.


Quotes of USD/JPY fell to the level of 110.44 under the pressure of Friday's statistics from the US. The instrument received additional support from the Bank of Japan head Kuroda's speech. In his speech, the official noted positive trends: moderate economic growth and consumer inflation at the level of 0.5–1%. At the same time, the regulator noted that it would adjust monetary policy to achieve a target inflation rate of 2%.


The instrument returned to the level of 1259.77. After the publication of weak data from the US, investors began to buy gold futures.

Morning Market Review

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