EUR/USD
Today, during the Asian session, the EUR/USD pair is falling, continuing the development of the “bearish” impulse formed yesterday. Investors are again fleeing risk after posting disappointing macroeconomic statistics from the US on Wednesday, which recalled the dire economic consequences of the COVID-19 pandemic. Thus, Retail Sales in March fell by 8.7% MoM after a decline of 0.4% MoM in January. Analysts had expected a weakening of 8.0% MoM. Sales dynamics was the worst since 1992. The rate of Industrial Production for the same period fell by 5.4% MoM, exceeding the most negative forecasts for a decrease of 4% MoM. The dynamics of industrial production was the weakest since the end of World War II. The percentage of capacity utilization in March also fell significantly from 77% to 72.7%, which was worse than the forecasts of 73.8%. Finally, the April index of business activity in the manufacturing sector of the Federal Reserve Bank of New York fell from –21.5 to –78.2 points, while investors expected a decrease only to –35 points.
GBP/USD
Today, during the Asian session, the GBP/USD pair is falling, developing the correction impulse formed yesterday. Investors prefer to avoid risks again and buy USD. The reason for the next aggravation of the situation was the disappointing macroeconomic statistics from the United States, which reflected a record drop in industrial production and retail sales. British investors extrapolated the situation to their country, where the statistical picture of the epidemic dynamics is also depressing. Released data also signalize the immersion of the British economy in crisis. Thus, statistics on retail sales from the Confederation of British Industrialists in March fell sharply by 3.5% YoY after weakening by 0.4% YoY in February.
AUD/USD
Today, during the Asian session, the AUD/USD pair is declining, developing correctional dynamics against the background of widespread growth in demand for the American currency. Interest in shelter assets is growing rapidly after the appearance of Wednesday disappointing macroeconomic statistics from the United States, which frightened investors with the magnitude of the impending economic crisis in the global economy. In turn, the Australian dollar almost completely ignores the publication of an unexpectedly strong Australian labor market report for March. Thus, the employment rate grew by 5.9K jobs after rising by 25.6K in February. The unemployment rate for the same period increased by only 0.1% to 5.2%, which also was noticeably better than the market expectations of 5.5%. However, the report captured only the first half of March, when Australia had not yet implemented strict restrictive measures. Obviously, the real picture of the labor market is currently much worse.
USD/JPY
Today, during the Asian session, the USD/JPY pair is actively growing; continuing to develop the correction signal formed yesterday when the dollar managed to retreat from local lows from March 18. Now, the US currency has risen by 0.47% and is testing the level of 108.00 for a breakout. The surge in demand for the dollar is due to the publication of disappointing macroeconomic statistics on the dynamics of retail sales and industrial production in the US in March. Also, the season of American corporate reporting has started, which also does not please investors. For example, the stocks of Bank of America Corp. decreased by almost 7% after the quarterly report publication, which indicated a decline in profit by 48%.
XAU/USD
Today, during the Asian session, gold prices show flat dynamics, stepping back from yesterday’s record highs, as investors again actively are buying the American currency after the publication of disappointing macroeconomic statistics from the United States. However, it is clear that the demand for gold remains quite high, which does not allow the instrument to reverse into a downward correction. On Thursday, investors are focused on the March statistics on the dynamics of the started construction of houses in the United States and the Initial Jobless Claims data, which will put additional pressure on the dollar.
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