At the Asian session, the pair EUR/USD remained fairly calm, trading at 1.1560. The focus of investors' attention remains at ambiguous data from the US labor market and the trade war between the US and China. In July, Nonfarm Payrolls declined from 248K to 157K, but the Unemployment Rate fell from 4.0% to 3.9%, while Average Hourly Earnings remained at 2.7%. On Friday, it became known that China is ready to introduce duties from 5% to 25% on American products worth USD 60B. Just before that, Washington had announced a possible increase in import duties on Chinese goods worth USD 200B. This gave grounds to President Donald Trump to say that the tariffs work, and the US wins in the trade war. These statements support the US currency.


The pair GBP/USD slightly corrected in the morning to the level of 1.2990. GBP is still under pressure from the Brexit talks. On Friday, several senior British officials commented on the threat of Britain's withdrawal from the EU without a deal. The head of the Bank of England, Mark Carney, noted that the likelihood of such an outcome is not high, but it still exists, and in this case the UK is facing a decline in trade and economic activity and rising prices. Secretary of State for International Trade Liam Fox spoke even more definitely. In his opinion, because of the irreconcilable position of the EU, the probability of Brexit without an agreement is approaching 60%.


The AUD/USD pair is declining at the Asian session and is now trading at 0.7388. AUD is under pressure by the development of a trade war between China and the US, in particular, China's intention to impose retaliatory duties on American goods worth USD 60B. In general, investors are waiting for the Reserve Bank of Australia's decision on the interest rate, which is scheduled for Tuesday.


Quotations of the pair USD/JPY during the Asian session grew to the level of 111.35. JPY is also under pressure from the US-China trade conflict escalation.


Quotes of gold had ambiguous dynamics during the Asian session. After the rise to the level of 1217.50, a new decline began. Now the price is at 1215.00 and will probably continue to decline during the day.

Morning Market Review

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