At the Asian session, the pair EUR/USD rose slightly, reaching the level of 1.1560, but in general it remained calm. After the exchange of harsh statements on trade issues, the situation between the PRC and the US was somewhat flattened. Investors are still waiting for the beginning of negotiations between the parties. Following the weak data on factory orders published in Germany on Monday (their volume decreased by 4.0% MoM and by 0.8% YoY), the statistics published today on German industrial production also turned out to be negative. The indicator decreased from 3.1% to 2.5% YoY, and decreased from 2.6% to –0.9% MoM. Yesterday's statements of the German Ministry of Economics confirm that German trade is adversely affected by the global trading situation. In general, the European currency continues to remain under pressure.


The pair GBP/USD has been calm in the morning and is now trading at 1.2940. On Monday afternoon, the pair made an insignificant technical attempt at growth after a serious decline due to negative comments from Bank of England Governor Mark Carney and Secretary of State for International Trade Liam Fox on Brexit. Investors are waiting for new comments and news regarding the UK's withdrawal from the EU. In general, uncertainty in the market is growing, and pressure on the British currency is maintained.


The AUD/USD pair rose to 0.7398 during the Asian session. This morning, Reserve Bank of Australia left the interest rate unchanged at the level of 1.5%, as expected. In the RBA Rate Statement, the head of the regulator Philip Lowe noted that low rates continue to support the Australian economy, and the volume of investments in subsoil use and in public infrastructure is growing. The level of employment is rising, which gives prospects for reducing unemployment. Nevertheless, the problem of the insufficient growth rate of wages and low consumption of households remains. In these circumstances, the bank considered it expedient to keep the monetary policy unchanged.


Quotations of the pair USD/JPY during the Asian session had ambiguous dynamics. After the decline to the level of 111.20 the price returned to 111.35. The Japanese statistical data published today turned out to be controversial. Overall Household Spending reduced by 1.2%, however, it was lower than the market expected (–1.6%). On the other hand, Labor Cash Earnings in June grew more than investors expected, by 3.6% (instead of the predicted 1.7%).


Gold quotes at the Asian session corrected upwards to 1210.60 after a significant two-day decline. The price movement is of technical nature.

Morning Market Review

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