LiteForex Analytics


Active Trader
May 29, 2017
Morning Market Review
2019-07-25 08:23 (GMT+2)

The euro maintains negative dynamics against the US dollar, updating local minima of May 31. EUR is pressured by weak macroeconomic statistics, as well as the strengthening of the dollar amid progress in the US-China trade negotiations. Published yesterday, the European statistics on the business activity was below market expectations. The Markit Manufacturing PMI in Germany in July fell from 45.0 to 43.1 points, with the forecast of growth to 45.2 points. The composite Manufacturing PMI in the Eurozone for the same period decreased from 52.2 to 51.5 point, with a forecast of 52.1 points. The Markit Services PMI fell from 53.6 to 53.3 points, which coincided with the preliminary estimates of experts. Today the pair is trading ambiguously, waiting for the appearance of new drivers. Investors are focused on the ECB meeting, which is expected to clarify the prospects for a possible easing of monetary policy.


The pound showed quite active growth against the US dollar on July 24, recovering from a three-day decline. The reason for the emergence of positive dynamics were hopes for changes in the situation around Brexit after the new British Prime Minister Boris Johnson took office. The British currency received additional support from the euro, which is weakening amid disappointing macroeconomic statistics on the business activity ahead of the ECB meeting. The US data also proved ambiguous. The Markit Manufacturing PMI in July showed a decline from 50.6 to 50.0 points, while the forecast was 51.0 points. The composite PMI in July showed a slight increase from 51.5 to 51.6 points, not reaching forecasts of 52.1 points.


The Australian dollar is steadily falling against the US currency, updating local minima since July 11. The instrument is pressured by relatively weak macroeconomic statistics from Australia, while consumer sentiment on USD is supported by insignificant progress in the US-China trade negotiations. Published yesterday, the data on Australian business activity from Commonwealth Bank reflected the preservation of negative dynamics. The Services PMI in July fell from 52.6 to 51.9 points. The Manufacturing PMI fell from 52.0 to 51.4 points. The composite index, according to preliminary estimates, fell from 52.5 to 51.8 points.


The US dollar, having updated local maxima against the Japanese yen of July 17, tends to horizontal movement. The dollar is pressured by uncertain US macroeconomic statistics, which is to some extent true for the Japanese currency. Published yesterday, statistics from Japan was worse than expected. The Manufacturing PMI in July rose from 49.3 to 49.6 points, with a forecast of 49.7 points. The index of leading indicators in May fell from 95.9 to 94.9 points, contrary to expectations of a decline only to 95.2 points. The exception was the index of coincident indicators, which in May rose from 102.1 to 103.4 points, above the forecast of 103.2 points.


Oil prices showed a decline July 24, despite the fact that during the day the instrument showed a moderate increase. Confident support for the quotes was provided by the EIA oil reserves report. For the week of July 19, oil and petroleum products in the United States fell sharply by 10.835 million barrels after a decrease of 3.116 million over the previous period. Analysts expected a decrease of −4.011 million. The EIA report almost completely coincided with the API data that appeared the day before. The report also reflected the decline in oil production in the USA from 12.000 million to 11.300 million barrels per day. Additional price support is provided by the continuing tension in the Middle East.