During the Asian session, the pair EUR/USD showed ambiguous dynamics. After the decline to the level of 1.1600, the price rose to 1.1615. In general, investors are preparing for Friday, when the US inflation data will be announced. Today, a weekly report on the number of initial jobless claims is expected to be published. The indicator can grow for the third week in a row, this time from 218K to 220K, but will probably remain below the average June values. As for the trade war, Beijing promised to reply symmetrically to the recent US statements on raising the tariffs for Chinese goods by additional USD 16B. Starting from August 23, the PRC will also introduce a 25% duty on American goods worth USD 16B.


In the morning, the pair GBP/USD showed ambiguous dynamics. After the decline to 1.2850, the quotes returned to the level of 1.2890. In general, the pound remains under pressure of investors' doubts about the successful outcome of Brexit, which are supported by negative statements of British officials. For example, Secretary of State for International Trade Liam Fox estimated the probability of UK's exit from the EU without a deal at 60%. The publication of statistics on GDP and industrial production in the UK on Friday is able to stop the decline of the British currency. The indicators promise to grow substantially.


The pair AUD/USD at the Asian session rose to 0.7450, but is now correcting downwards. In general, the Australian currency was positively affected by Chinese data. The consumer price index in China rose by 0.3% MoM in July, while YoY it exceeded the level of 2.0% for the first time since March, amounting to 2.1%.


Quotations of the pair USD/JPY during the Asian session continued declining and reached the level of 110.70. The market ignored weak June data on machinery orders in Japan. Machinery orders fell by 8.8% MoM, while in annual terms the indicator increased by 0.3%, which, however, is much lower than May's growth (16.5%). Investors are waiting for Friday data on Japanese GDP, which promise to be positive.


Gold quotes at the Asian session corrected upwards to 1215.20. The asset is in demand amid the worsening of the US-China trade conflict.

Morning Market Review

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