During the Asian session, the pair EUR/USD slightly increased, reaching the level of 1.1590. Investors are preparing for publication of a block of July statistics from the US labor market, the most important components of which will be the data on nonfarm payrolls and the unemployment rate. According to forecasts, the unemployment rate will start to fall again and may reach the level of 3.9%. Nonfarm payrolls may decrease from 213K to 190K but the leading indicators showed strong data, so the forecast may not be justified. ADP Employment Change rose from 181K to 219K in July, and initial jobless claims continue reducing.


The pair GBP/USD consolidated at 1.3015 in the morning after a significant decline on Thursday. The decline was caused by the market reaction to the results of the meeting of the Bank of England. The regulator raised the interest rate from 0.50% to 0.75%, but Mark Carney's comments were very restrained. The official noted that further rate increases will be gradual and limited, and inflation will return to the target level of 2.0% only by 2020. He also stated that negotiations on Brexit enter a "critical period" and the regulator is preparing for all possible, including negative, scenarios. Currently, the price is consolidating, and investors are preparing for the publication of data from the US labor market and Services PMI of the UK. The decrease from 55.1 to 54.7 points is expected, which may put additional pressure on GBP.


The AUD/USD pair rose to 0.7370 during the Asian session. The July decline of Services PMI of Australia from 63.0 to 53.6 points remained virtually unnoticed by the market. AUD was supported by strong data on retail sales. The indicator did not decrease in June, as market participants expected, but remained at the same level of 0.4% for the third consecutive month.


Quotations of the pair USD/JPY during the Asian session grew to the level of 111.75. JPY was under pressure of negative data on Services PMI, which fell to 51.3 points instead of the expected growth. JPY is also negatively affected by the July decline of Caixin China Services PMI from 53.9 to 52.8 points.


Gold quotes continued downward movement and reached the level of 1206.60. In the afternoon, investors are waiting for the release of statistics from the US labor market and developments in the trade war between the US and China.

Morning Market Review

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