EUR/USD

The EUR/USD pair declined at the Asian session and is now trading at 1.1675. Controversial preliminary July Markit data on business activity indices in the US did not have a serious impact on the market. Services PMI declined from 56.5 to 56.2 points, and Manufacturing PMI increased insignificantly from 55.4 to 55.5 points. Investors are waiting for Thursday, when the ECB meeting will take place with a decision on the interest rate as well as trade talks between the representatives of the EU and the US on the abolition of the introduction of import duties on European cars.

During the day, data on German IFO Business Climate indicator is expected. The indicator in July may decrease from 101.8 to 101.5 points reaching its minimum values since November 2012, which will illustrate the uncertainty of German managers concerning the nearest future. New US export duties on EU-produced cars, which are expected to be implemented soon, can seriously damage, above all, the German economy.

GBP/USD

The GBP/USD pair is trading calmly around 1.3140 in the morning. As there is a lack of key economic releases, the movement of the price is of technical nature. Investors are waiting for the continuation of Brexit negotiations.  On Thursday it became known that British Prime Minister Theresa May will take them under personal control, and Dominic Raab, the new Brexit secretary, will become her deputy. Negotiations with the EU should be finished in October and by this time the British government expects to conclude a deal.

AUD/USD

The AUD/USD pair was correcting downwards and reached the level of 0.7390. Weak inflation data for Q2 2018 in Australia put pressure on the price. Consumer Price Index QoQ remained at 0.4% instead of the expected growth, and YoY it did not reach the forecasts and amounted to 2.1%, exceeding, however, the target level of 2.0%.

USD/JPY

Quotes of USD/JPY during the Asian session were calm, and traded around 111.20. Investors are waiting for the next week, when the Bank of Japan may change the monetary policy. Its ultra-soft model was introduced by the regulator about five years ago, but inflation did not reach the target level of 2.0%. Now the policy of the Bank of Japan needs to be adjusted.

Gold

Quotes of gold in the morning had ambiguous dynamics, but in general remained in the range of 1223.00–1226.00. Investors are waiting for the development of US trade conflicts with other countries.

Morning Market Review

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