Morning Market Review
EUR/USD
EUR is showing moderate gains against USD, developing the "bullish" momentum that formed the day before, when EUR managed to recover in a thin market. USD remains under pressure against the backdrop of inaction by the US Fed and actively growing inflation in the country. The regulator has repeatedly explained the rapid rise in prices only by temporary phenomena, but the market is beginning to doubt this. Macroeconomic statistics from the US published last Friday supported USD position, but investors are already confident in the recovery of the national economy, so the data did not have any long-term effect. Today, market participants expect the publication of statistics from Germany, which will help assess the prospects for the recovery of the largest economy in Europe.
GBP/USD
GBP is strengthening against USD during today's Asian session, trying to recover from the decline at the end of last week and the timid start of trading on Monday. Market activity remains subdued, while investors expect new drivers to emerge. Macroeconomic statistics from the US released last Friday provided only short-term support to USD, while traders are somewhat disappointed by the vague prospects of the US Fed's monetary policy, which prefers to take a wait-and-see attitude. Today investors will be focused on statistics on the US house price index from S&P/Case-Shiller for March, as well as the April dynamics of new home sales. In addition, a speech by the representative of the Bank of England Silvana Tenreiro is expected.
AUD/USD
AUD is showing ambiguous dynamics against USD during today's Asian session, testing 0.7760 for a breakout. The instrument's positions are strengthening against the backdrop of corrective sentiment for USD, as well as due to the stable positive dynamics in the commodity markets, including the oil market. The minutes of the US Fed meeting released last week underscored the wait-and-see position of the American regulator, which does not seek to curtail the measures to stimulate the economy. According to the Fed Governor Jerome Powell, the national economy will need several more months to reach a plateau, where it would be appropriate to discuss the reduction of support programs. This week, investors expect the publication of American statistics on the dynamics of personal income and spending, which will help assess the current inflationary processes within the economy.
USD/JPY
USD is trading with ambiguous dynamics against JPY in today's Asian session, consolidating near 108.70. Yesterday's trading was marked by a slight decrease in the rate of USD; however, in general, the market sentiment remained practically unchanged. Investors ignore the positive macroeconomic statistics from the US and are focused on the future policy of the US Fed, which refuses to recognize rising inflation as a threat to the national economic recovery. The market also reacted poorly to the speech of the head of the Bank of Japan Haruhiko Kuroda on Monday. The head of the Japanese regulator touched upon the global recovery of the world economy after the coronavirus crisis, warning that the stabilization process would be heterogeneous and could lead to increased economic inequality.
XAU/USD
Gold prices began to decline in trading this morning session, retreating from the highs since the beginning of the year, updated last week. The "bearish" trend is facilitated by technical factors, while the fundamental picture does not change much. Monday trading was characterized by flat dynamics; however, gold received support from the weakening positions of USD and a further decrease in the yield of US Treasury bonds. Additional support for the instrument is still provided by the extremely soft position of the US Fed, which does not consider the possibility of tightening monetary policy in the next few months.