The US dollar shows ambiguous dynamics against most majors, falling against the euro, pound and the yen, but strengthening against the Australian dollar. Today, market participants expect the publication of data from the United States on Initial Jobless Claims (15:30 GMT+2), as well as on Manufacturing PMI (16:45 GMT+2). It is expected that the number of initial jobless claims will rise to 220K from 213K a week earlier. Manufacturing PMI is expected to fall to 53.5 points in January from 53.8 points a month earlier. If this forecast is right, it will put pressure on the US dollar in the short run.

EUR/USD

During yesterday's trading, the quotes of the EUR/USD pair strengthened significantly and reached the level of 1.1380, near which they are consolidating during the Asian session. Today, investors are waiting for the publication of data from the euro area on the Manufacturing PMI as well as on Services PMI (11:00 GMT+2), and also for the ECB interest rate decision. The rate is expected to remain unchanged at the level of 0.00%. Today at 15:30 GMT+2, Mario Draghi is expected to give a press conference. It is expected that the head of the ECB will describe the risks to the European economy and assess the results of the completed asset purchase program. Draghi’s opinion will be particularly important due to the potential aggravation of trade relations between the US and the EU. Manufacturing PMI is expected to remain unchanged at the level of 51.4 points in January. Services PMI is expected to grow to 51.5 points in January from 51.2 points a month before.

GBP/USD

The pair GBP/USD is showing positive dynamics having risen to 1.3070 during the Asian session. The pound is supported by the likely extension of the Brexit negotiation process and the postponement of the UK’s final withdrawal from the EU from March 29 to a later date. Today, the macroeconomic calendar of the UK lacks important releases, so the movement of the rate will depend on external factors.

USD/JPY

The pair USD/JPY dropped to 109.57 due to the general weakening of USD. As there is a lack of key economic releases, the movement of the price is of technical nature.

AUD/USD

During the Asian trading session, the quotes of AUD/USD are traded in both directions. After the publication of positive statistics on the labor market in Australia, the rate of the instrument rose to the level of 0.7165, after which it just as quickly went down to the level of 0.7103. Employment Change turned out to be better than the forecasts and amounted to 21.6K in December against 37.0K a month earlier (with the forecast of +16.5K). The Unemployment Rate dropped to 5.0% in December from 5.1% a month earlier.

Gold

Gold quotations are falling moderately having dropped to 1281.25 during Asian trading.

Morning Market Review

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