During the Asian session, the pair EUR/USD continued the decline started on Tuesday, and has now reached the level of 1.1680. Yesterday's data on personal spending and income of American citizens were controversial and did not affect the market. Personal Spending indicator declined from 0.5% to 0.4%, and Personal Income one remained at the level of 0.4%. The central event of the day will be a decision on the Fed's interest rate, or rather the Monetary Policy Statement that follows it. It is expected that the rate will remain at the same level of 2.0%, and comments may shed light on further plans of the regulator. In addition, investors are worried about the aggravation of the US-China trade war. Bloomberg reported that the US administration may introduce 25% duty on Chinese goods instead of introducing 10% duty worth USD 200 billion. The market is waiting for the development of the situation.


The pair GBP/USD in the morning corrected downwards and reached the level of 1.3105. During the day, the Manufacturing PMI of the UK is due, which may fall from 54.4 to 54.2 points and put pressure on the pound. However, investors will continue to prepare for the meeting of the Bank of England, which will be held on Thursday. The chances of raising rates to 0.75% still remain, but they are getting smaller. The British regulator is under additional pressure by the situation around Brexit. During the last round of negotiations between the UK and the EU, London's initiative to collect trade duties on behalf of the EU was rejected, which raises the chances of Brexit without an agreement for Britain. And in this case, as Mark Carney pointed out, the BoE may need to not only refuse to raise rates, but, possibly, even reduce them.


The AUD/USD pair declined to 0.7410 during the Asian session. AUD was pressurized by the weak data on Manufacturing PMI of China, which fell from 51.0 to 50.8 points in July. Also, during the day investors are waiting for the Fed's decision on the interest rate and the development of a trade conflict between the leading Australian trading partners, the US and China.


Quotations of the pair USD/JPY during the Asian session grew to the level of 111.95. The publication of strong July data on Japan's Manufacturing PMI could not support the yen. The indicator increased from 51.6 to 52.3 points. During the day investors are waiting for the Fed's meeting and its decision on the interest rate.


Quotes of gold corrected downwards and reached the level of 1221.00 in the morning. While the movement of the instrument is of a technical nature, investors are waiting for the outcome of the Fed meeting.

Morning Market Review

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