During the Asian session, the pair EUR/USD was traded in both directions. After an insignificant attempt at growth, the decline resumed, and the price reached the level of 1.1650. As expected, the results of the Fed meeting did not surprise the market. The interest rate remained at the same level of 2.0% by unanimous decision of the commission. Fed's Monetary Policy Statement stated that the regulator expects a further gradual increase in rates, the situation on the labor market continues to improve, monetary policy remains stimulating, spending and investment grow significantly, and economic risks remain balanced. USD was under a temporary pressure by the negative data on ISM Manufacturing PMI in the US. In July, the indicator declined lower than expected and amounted to 58.1 points, which, however, remains a high result.


The pair GBP/USD corrected downwards and reached the level of 1.3100. Publication of the UK PMI Construction is expected during the day; the index may decline from 53.1 to 52.8 points. The central event of Thursday will be a meeting of the Bank of England with a decision on the interest rate and Mark Carney's speech. According to forecasts, the regulator can raise the interest rate to 0.75%, but is experiencing serious economic and political pressure. The latest series of weak economic data, confirming the decline in inflation and weak wage growth, signals of the instability of the British economy. At the same time, the delay in negotiations on Brexit and the risk of not making a deal threaten the UK with new economic losses and make the Bank of England to be cautious.


The AUD/USD pair declined to 0.7378 during the Asian session. Published on Thursday, data on the Australian trade balance as a whole turned out to be positive. The surplus of the balance in June amounted to 1.873B dollars, which significantly exceeded the market expectations. At the same time, the volume of imports decreased by 1.0%, while the volume of exports increased by 3.0%. However, in general, AUD remains under the pressure of the trade conflict between the US and China, which is the reason for its weakening.


Quotations of the pair USD/JPY during the Asian session corrected to the level of 111.50. As there is a lack of key economic releases, the movement of the price is of technical nature. Investors are watching the development of the US-China trade war. It is expected that the parties can resume negotiations, but for the time being, the US only increases tariff pressures to force the PRC to make concessions.


Quotes of gold during the Asian session grew to 1220.90, but have now resumed the decline. The Fed meeting, as a result of which the interest rate and monetary policy remained unchanged, temporarily returned investors' interest in commodity assets.

Morning Market Review

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