EUR/USD

The EUR/USD pair fell to the level of 1.1635. The pressure on the instrument is exerted by the US currency, strengthened by yesterday's speech of the head of the Fed, Jerome Powell. He noted the positive trends in the US economy and said that the regulator will adhere to a plan that provides for a gradual increase in rates. Jerome Powell also positively assessed the level of inflation and the situation in the labor market. Investors reacted to this news by actively selling the euro in favor of the US dollar. Today investors will pay attention to the EU Consumer Price Index (11:00 GMT+2). MoM indicators are expected to decrease significantly: the Consumer Price Index – from 0.5% to 0.1%, and the Base Consumer Price Index — from 0.3% to 0.1%. YoY values will remain unchanged. CPI will be 2.0%, and the Core CPI — 1.0%.

GBP/USD

The GBP/USD pair, under pressure from weak labor market data in the UK and the general strengthening of the US dollar, fell to 1.3092. The forecasts of the IMF, according to which the UK GDP this year may grow by 1.4%, rather than 1.6%, as previously thought, also affected the British currency negatively. Today, the traders are focused on June UK inflation data release. YoY value can start growing again from 2.4% to 2.6%. Core CPI can grow from 2.1% to 2.2%. If the forecast proves correct, it can support the instrument.

AUD/USD

The AUD/USD rate fell to 0.7370 under the pressure of the growing US dollar. Due to the absence of important releases in the macroeconomic calendar of Australia, the dynamics of the pair will be subject to the influence of statistics from the US. Today, the data on construction in the US will be published (14:30 GMT+2). Jerome Powell's second speech in Congress, this time in Committee on Financial Services, U.S. House of Representatives is due at 16:00 (GMT+2). Probably, he will touch upon the same topics as in the Senate: the economic situation, trade wars, further tightening of the monetary policy.

Powell's rhetoric about issues tackled during yesterday's speech is unlikely to change, and the instrument will continue to move within the downtrend.

USD/JPY

The pair USD/JPY rose to the level of 113.00 today. The pair is supported by positive comments from the US Federal Reserve on the prospects for a gradual increase in the interest rate.

Gold

Quotes of gold fell after the speech of the head of the Fed, Jerome Powell, at which he confirmed his commitment to a gradual increase in the interest rate. Investors began to sell futures for gold, the prices of which are expressed in dollars, actively. Against this background, the instrument reached 1224.50. The downtrend still remains in the short term.

Morning Market Review

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