EUR/USD

The pair EUR/USD continued to grow at the Asian session and has now reached the level of 1.1749. USD is under pressure from the latest comments by US President Donald Trump. Last week, he made it clear that he was ready to impose tariffs on Chinese goods worth USD 500 billion, and then accused the PRC and EU of manipulating interest rates and understating rates of national currencies in order to gain advantages in trade. Trump had previously accused his trading partners of this and was talking about the need for a weak USD. Many experts think that the current statements of the US president just aim at weakening the USD.

During the day, investors are waiting for the publication of data on existing home sales in the US. The indicator estimates the number of re-sold houses and is one of the indicators of business activity in the construction sector. The indicator is expected to grow from 5.43M to 5.47M houses in June, which could strengthen USD.

GBP/USD

The pair GBP/USD is also growing at the Asian session, and has now reached the level of 1.3145. USD remains under pressure from the latest comments of President Trump, which indicate a possible exacerbation of trade wars. The long-term fundamental background remains negative for the pound. The weak latest economic statistics may prevent the Bank of England from raising the interest rate in August, and the delay in negotiations on Brexit threatens the UK's exit from the EU without a deal and a serious blow to the British economy. On Sunday, in an interview with the BBC, Brexit Affairs Minister Dominic Raab acknowledged that the government is already developing a plan in case the UK and the EU fail to reach an agreement.

During the day, market participants are waiting for the MPC Member Ben Broadbent speech, who may hint at further actions of the British regulator.

AUD/USD

The pair AUD/USD also grew at the Asian session and is currently trading around 0.7430. AUD is using the weakening of the USD after the statement of Donald Trump, in which he accused the PRC and the EU of manipulating interest rates. In general, investors are waiting for the development of the trade conflict between the US and China, the escalation of which could lead to the weakening of the AUD. On Wednesday, the most important data on the Consumer Price Index in Australia for Q2 2018 will be published.

USD/JPY

Quotations of USD/JPY started the week with the decline. Currently the price is around the level of 110.90. The growth of the instrument is due to the weakening of USD at the end of last week. Investors continue following the development of the trade war between China and the US.

Gold

Quotes of gold have ambiguous dynamics. After rising to the level of 1234.90, the price returned to its starting positions and is currently trading around 1231.30. Investors expect the development of the situation in world trade. The escalation of trade conflicts will promote the growth of gold as a safe haven asset.

Morning Market Review

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