Forex News Analysis by LiteForex

Morning Market Review

EUR/USD

EUR is showing a slight decrease against USD during today’s Asian session, consolidating after an active but multidirectional dynamics the day before. Yesterday, quite a lot of interesting macroeconomic statistics was released in Europe and the USA; however, it did not contribute to the formation of any intelligible vector of movement in the market. Coronavirus again became the main topic of discussion, which was once again emphasized during a joint speech by US Treasury Secretary Steven Mnuchin and the Fed Chair Jerome Powell. Powell tried to soften the overall negative picture, noting that the US economy was able to recover to current levels faster than the initial estimates, but further prospects so far are slim. Today, investors are focused on the June report on the labor market in Germany, as well as data on Non-Farm Payrolls in the US from ADP.

GBP/USD

GBP slightly declines against USD in morning trading today, retreating from local highs since June 26, updated the day before. The reason for the active growth of the instrument on Tuesday was the positive comments of Michel Barnier, EU chief negotiator on Brexit. Barnier emphasized that based on current agreements between the parties the potential conclusion of a trade deal is possible. Meanwhile, the growth of GBP was overshadowed by new alarming information about the increase in the number of patients with coronavirus in the UK. Earlier this week, the government announced the return of quarantine restrictions in Leicester, where a new outbreak was recorded.

AUD/USD

AUD is trading in both directions against USD during today’s Asian session, trying to consolidate below 0.6900. Some pressure on AUD is exerted by macroeconomic statistics from Australia. Building Permits issued in May fell sharply by 16.4% MoM after a decrease of 1.8% MoM in the previous month. Analysts had expected deterioration in the dynamics of the indicator, but expected a decrease of 10% MoM. In annual terms, the number of permits fell by 11.6% YoY after an increase of 5.7% YoY a month earlier. In turn, data from China support the buying activity in the instrument. Caixin Manufacturing PMI in June rose from 50.7 to 51.2 points against the forecast of a decrease to 50.5 points.

USD/JPY

USD is falling against JPY during today’s trading session, testing the level of 107.60 for a breakdown. The instrument managed to update local highs since June 9 at the opening of the session, but the uncertain market situation did not allow the “bulls” to consolidate at new levels. JPY is supported today by good macroeconomic indicators from Japan. Jibun Bank Manufacturing PMI rose from 37.8 to 40.1 points in June, although analysts did not expect changes in the indicator. Consumer Confidence Index for the same period rose from 24 to 28.4 points, which turned out to be better than market expectations for a decrease to 20.9 points.

XAU/USD

Gold prices are trading in both directions near their multi-year highs, which were once again updated the day before. Investors are once again resorting to safe assets amid alarming news of a new outbreak of coronavirus, which may erase previous estimates of the timing of global economic recovery. First of all, the growing incidence in the United States is alarming, as the US economy has just begun to recover from the first wave of quarantine restrictions. Rising geopolitical tensions between the US and China also contribute to lower demand for risk. Earlier, Beijing passed a controversial national security bill, which implies the strengthening of state control in Hong Kong. In response to this decision, the USA withdrew the special status of Hong Kong, which implied certain preferences in the field of trade.

Morning Market Review

EUR/USD

EUR shows moderate growth against USD during today's Asian session, continuing an uncertain "bullish" momentum formed yesterday. European investors reacted optimistically to German labor market statistics. In June, the number of unemployed in the country fell sharply from 238K to 69K, with a forecast of a decrease to only 120K. However, the Unemployment Rate rose from 6.3% to 6.4%, but turned out to be better than its forecasts of 6.6%. Germany also showed steady growth in retail sales. In May, sales grew by 13.9% MoM and 3.8% YoY, which is much better than average forecasts of +3.9% MoM and –3.5% YoY. In turn, investors are notably cautious amid continued growth in the incidence rate in the United States. California and Texas reported a record number of cases of coronavirus, which threatens the return of large-scale quarantine measures in the country. In addition, on July 4, the United States celebrates Independence Day, which could lead to another outbreak if the celebrations are not canceled.

GBP/USD

GBP is showing weak growth against USD during today's morning session, trying to consolidate above 1.2500. Yesterday, GBP managed to strengthen, continuing the uptrend of Tuesday, and almost completely ignored the weak statistics from the UK. According to the results of Q1 2020, UK GDP showed a decrease of 2.2% QoQ and 1.7% YoY, which turned out to be worse than market expectations of –2% QoQ and –1.6% YoY. Current Account in the UK for the same period showed a deficit of 21.1B pounds with a forecast of –15B pounds. Notable support for GBP is provided by quite tangible progress during negotiations between the UK and the EU. For the first time in a long period, a timid hope appeared that the parties would still come to a consensus and a trade deal would be concluded before the Brexit deadline at the end of the year.

NZD/USD

NZD continues moderate growth against USD, approaching another resistance near 0.6500. Support for the instrument is provided by not the strongest USD. Morbidity statistics worry investors, but they do not hurry into safe assets, believing that Europe, for example, has managed to cope with the coronavirus epidemic much better. China also creates a good background, where a new outbreak of disease was quickly taken under control. Macroeconomic statistics from the USA published on Wednesday turned out to be moderately positive. ADP Employment Change report indicated an increase by 2369K, which turned out to be worse than market expectations of 3000K. ISM Manufacturing PMI in June rose sharply from 43.1 to 52.6 points with the forecast of 49.5 points. Markit Manufacturing PMI grew from 49.6 to 49.8 points with a neutral forecast.

USD/JPY

USD shows flat dynamics against JPY during today's Asian session, developing correctional momentum formed when the instrument retreated from its local highs since June 9. Against the backdrop of alarming statistics about the increase in the number of new cases of coronavirus in the United States, investors prefer JPY to USD. In addition, it should be noted that there is still a demand for risk in the market now, partly due to good European statistics and hopes for a further recovery of the global economy. Today investors are focused on the publication of the June report on the US labor market. Traders are hoping for a noticeable improvement in key indicators, which will give an upward momentum to USD.

XAU/USD

Gold prices are consolidating this morning, having experienced a marked decline yesterday, when quotes retreated from their multi-year highs. The pressure on the instrument was provided by technical factors, as well as the redistribution of long positions in the market. Published on Wednesday, macroeconomic statistics on employment and business activity in the US manufacturing sector also contributed to the downtrend in gold, but the main indicators of the US economy will be released today.

EUR/USD

EUR shows a slight decline against USD during today's Asian session, developing flat trend in the short term. US macroeconomic statistics released yesterday allowed USD to recover in the afternoon and move away from local lows since June 24. Meanwhile, the released data cannot be called unambiguously positive. Nonfarm Payrolls in June grew by 4800K, significantly exceeding market expectations of 3000K. Unemployment Rate fell in June from 13.3% to 11.1%, which also turned out to be better than expectations of 12.3%. At the same time, the Average Hourly Earnings in June slowed down from +6.6% YoY to +5% YoY, while experts were counting on +5.3% YoY. Initial Jobless Claims for the week ending June 26 increased by 1.427M applications, which turned out to be worse than the forecasts of 1.355M.

GBP/USD

GBP is consolidating against USD at the end of the week, trading near 1.2450. The upward potential of the instrument turned out to be almost completely exhausted by the end of the week amid the publication of a large amount of interesting macroeconomic statistics from the USA. In addition, GBP is still under pressure from uncertain prospects regarding trade negotiations between the UK and the EU, despite a series of optimistic statements on both sides of the process. In turn, a more confident growth of USD is restrained against the background of alarming information about the dynamics of the incidence of coronavirus in the United States. The country again shows a record growth rate of new cases, which may lead to returning to strict quarantine restrictions.

AUD/USD

AUD shows flat dynamics against USD during today's Asian session, trading near the previous local highs since June 24, updated the day before. The growth of the instrument slowed down somewhat yesterday against the background of the publication of moderately optimistic macroeconomic statistics from the USA. Today, the instrument is supported by data from Australia and China. Retail Sales in Australia increased by 16.9% MoM in May after growth by 16.3% MoM a month earlier. Analysts had expected it to maintain the same growth rate. The Chinese Caixin Services PMI grew from 55 to 58.4 points in June, while forecasts predicted its decline to 49.9 points.

USD/JPY

USD is trading ambiguously against JPY during today's morning session, consolidating near 107.50. Traders continue to analyze the June statistics on the US labor market, released the day before. The steady increase in Nonfarm Payrolls and lower unemployment at the end of June were overshadowed by a further decrease in the dynamics of earnings growth and a high rate of Initial Jobless Claims. Support for JPY at the end of the week is provided by data on the Japanese Services PMI from Jibun Bank. In June, the index rose from 26.5 to 45 points, which turned out to be better than average market forecasts.

XAU/USD

Gold prices are once again consolidating in the market during today's Asian session. The day before, instrument showed moderate growth, despite the publication of a large number of positive macroeconomic statistics from the United States. In particular, investors were optimistic about the high rate of Nonfarm Payrolls in June. At the same time, the first attempts of the US economy to begin recovering are overshadowed by alarming information about the record increase in new patients with coronavirus in the country. It is quite likely that the US authorities will have to return part of the quarantine restrictions in order to reduce the intensity of the second wave of incidence, which will be extremely painful for the country's weakened economy.

Morning Market Review

EUR/USD

EUR shows strong growth against USD during today's Asian session, approaching the local highs of last Thursday. Moderate support for the instrument is provided by good macroeconomic statistics from Europe, published last Friday. Markit Services PMI in Germany rose in June from 45.8 to 47.3 points with a neutral forecast. Markit PMI Composite for the same period rose from 45.8 to 47 points, which also turned out to be better than the forecasts. Markit Services PMI in the eurozone grew from 47.3 to 48.3 points, while Markit PMI Composite rose from 47.5 to 48.5 points. In turn, pressure on USD is caused by disturbing news regarding the dynamics of the incidence of coronavirus in the United States. Despite the record growth rate of new cases, the authorities are hesitant to return harsh quarantine measures, limiting themselves only to a number of local restrictions. In particular, President Donald Trump has not canceled a trip around the country, dedicated to the celebration of Independence Day.

GBP/USD

GBP is trading with an uptrend against USD this morning, developing a "bullish" signal formed last week. Investors began to buy GBP actively against the background of optimistic comments from officials who positively assessed the prospects of concluding a trade deal between the UK and the EU before the Brexit deadline at the end of the year. However, further growth of the instrument is hindered by the uncertainty that is inherent in many markets today. Today, investors are focused on business activity statistics from ISM in the USA. In the UK, Markit Construction PMI data for June will be published.

NZD/USD

NZD continues moderate growth against USD during today's Asian session. The instrument is testing the level of 0.6550, which is the highest since June 10. Demand for NZD remains quite high, given the overall recovery of the global economy. First of all, investors are optimistic about signals from China, while news from the USA, for example, remains alarming due to a sharp increase in the incidence of coronavirus. Some pressure on NZD at the beginning of the week was exerted by statistics from New Zealand. In June, ANZ Commodity Price Index decreased by 0.7% MoM after rising 1.1% MoM a month earlier. Analysts had expected zero dynamics.

USD/JPY

USD shows moderate growth against JPY during today's Asian session. The instrument adds about 0.20% and is testing the level of 107.70 for a breakout. Moderate support for USD is still provided by data on the US labor market published last Thursday. Despite the fact that not all investors' expectations were met, the US economy is showing a fairly rapid recovery. In turn, traders are concerned about the rapid increase in new cases of coronavirus incidence in the United States. It is possible that in the near future, President Donald Trump will have to return part of the quarantine restrictions, which will negatively affect the pace of recovery in the US economy.

XAU/USD

Gold prices show ambiguous dynamics of trading, located near the level of 1770.00. The instrument is supported by concerns about a new wave of coronavirus incidence in the world. First of all, investors are worried about the record dynamics in the USA. At the same time, a fairly large amount of positive macroeconomic statistics, including from the USA and China, enter the market, which increases the demand for risky assets and leads to a decrease in gold quotes. The instrument receives additional support from escalated geopolitical risks. In particular, the confrontation between the USA and China intensified again after Beijing passed the controversial bill on national security and began its implementation in Hong Kong.

WTI Crude Oil: oil prices consolidate

Current trend

Today, during the Asian session, the price of oil shows ambiguous dynamics, trying to consolidate above the level of $40 per barrel. Quotes are supported by optimistic macroeconomic statistics, which indicate a gradual recovery of the global economy. In turn, alarming data on the surge in the incidence of coronavirus in the United States and several other countries are holding back the further growth of the instrument. Investors fear that a new wave of the COVID-19 epidemic may lead to a decrease in demand for oil products, especially if states are forced to return part of the quarantine restrictions.

On Tuesday, the market is focused on the publication of data from the American Petroleum Institute on oil reserves for the week of July 3. The previous report reflected a sharp decrease by 8.156 million barrels, which significantly supported the instrument.

Support and resistance

On the daily chart, Bollinger bands are growing slightly. The price range changes slightly, reflecting the flat nature of trading in the short term. The MACD indicator falls, maintaining a poor sell signal (the histogram is below the signal line). Stochastic has reversed near the level of 80 and is reflecting the development of a correctional decline in the ultra-short term.

To open new trading positions, it is better to wait for the signals from technical indicators to be clarified.

Resistance levels: 40.97, 42.00, 43.00.
Support levels: 40.00, 38.91, 37.36, 35.70.

Morning Market Review

EUR/USD

EUR shows flat dynamics of trading against USD during today's Asian session, consolidating after the decline the day before, which did not allow the instrument to consolidate at local highs since June 23. On Tuesday, EUR almost completely ignored quite uncertain macroeconomic statistics from Germany. Industrial Production in May increased by 7.8% MoM after a decrease of 17.5% MoM a month earlier. Analysts had expected growth by 10% MoM. In annual terms, Industrial Production rate decreased by 19.3% YoY against the forecast of a decrease of 11.1% YoY. Today, European investors are focused on the speech of the ECB Vice President Luis de Guindos, while in general no interesting publications are expected.

GBP/USD

GBP shows a slight increase against USD during today's morning session, trading near the local highs of June 16, which the instrument managed to update the day before. GBP is supported by rumors of notable progress on the Brexit issue, but there is no official information yet. UK macroeconomic statistics published yesterday did not have a significant impact on the dynamics of the instrument. Halifax House Price Index in June showed an increase of 2.5% YoY/3M, slightly slowing down from the previous value of 2.6% YoY/3M. On a monthly basis, the index fell by 0.1% MoM after a decrease of 0.2% MoM in May. The indicator also was much better than its projected decrease of 0.9% MoM.

AUD/USD

AUD shows ambiguous dynamics of trading against USD during today's Asian session. The pair retreated from local highs under the influence of technical factors, as well as after some improvement in the statistics on incidence in the United States, which increased the attractiveness of USD. The minutes of the RBA meeting published yesterday were neutral. The regulator kept the key interest rate at the previous level of 0.25% as expected, while not reporting anything new in the follow-up statement. Macroeconomic statistics also turned out to be neutral. AiG Performance of Services Index went down from 31.6 to 31.5 points in June. No interesting publications are expected in Australia and the USA today.

USD/JPY

USD shows ambiguous dynamics of trading against JPY during today's Asian session, continuing the development of a flat trend in the short term. JPY is moderately supported by Japanese statistics today. Eco Watchers Survey Outlook in June showed an increase from 36.5 to 44 points with a forecast of a decrease to 24.1 points. Eco Watchers Survey Current for the same period strengthened from 15.5 to 38.8 points, which also turned out to be noticeably better than market expectations of 21.1 points. Bank Lending in June grew by 6.2% YoY after an increase of 4.8% YoY in the previous month. Analysts had expected growth by 7.2% YoY.

XAU/USD

Gold prices are consolidating after the next update of multi-year highs at yesterday's trading. The asset has risen in price in response to investor concern over the growing number of new cases of coronavirus incidence. Among other things, India, which is one of the largest consumers of gold, attracted attention. The situation in the United States is also worrying, but recently there has been some stabilization of dynamics, which has provoked corrective growth of USD across almost the entire spectrum of the market.

Morning Market Review

EUR/USD

EUR has shown steady growth against USD during today's Asian session, updating local highs since June 11. The instrument adds about 0.34% and is testing the level of 1.1370 for a breakout. EUR is supported by the positive sentiment of investors, who positively assess the growth rate of the eurozone economy and expect new fiscal measures from the Fed in response to the rapid growth of new cases of coronavirus incidence in the United States. In the medium to long term, traders expect testing of 1.1500 if the situation does not change significantly. Today, European investors are focused on the data from Germany on the dynamics of imports and exports in May, as well as information on the country's trade balance for the same period.

GBP/USD

GBP continues moderate growth against USD this morning, updating local highs since June 16. Despite the increase in demand for USD in response to the worsening situation with the incidence of coronavirus in the world, GBP remains positive, expecting significant progress on the Brexit issue and the conclusion of a trade agreement with the EU by the end of the year. Today, investors are expecting the publication of a block of macroeconomic statistics on the dynamics of the US labor market. It is expected that the number of initial jobless claims for the week ending July 3 will fall below 1.400M, which, however, can hardly be considered a truly optimistic result.

NZD/USD

NZD shows an uptrend against USD during today's Asian session, updating record highs since the end of January and again preparing to test the level of 0.6600 for a breakout. Statistics from New Zealand and China provide moderate support for the instrument today. ANZ Business Confidence in June rose from –34.4 to –29.8 points, which turned out to be quite close to the forecast of most analysts. The Chinese Consumer Price Index showed a decline of 0.1% MoM in June after falling 0.8% MoM in May. Experts expected to see zero dynamics of the indicator. In annual terms, inflation in June accelerated from +2.4% YoY to +2.5% YoY.

USD/JPY

USD shows flat dynamics of trading against JPY during today's Asian session, consolidating after a moderate decline the day before, provoked by the publication of good macroeconomic statistics from Japan. Japanese data released today also provided moderate support for the yen. Machinery Orders in May grew by 1.7% MoM after a decrease of 12% MoM a month earlier. Experts expected the negative dynamics to remain at the level of –5.4% MoM. In annual terms, the dynamics of orders improved from –17.7% YoY to –16.3% YoY with a forecast of –17.1% YoY.

XAU/USD

Gold is trading in the green zone during today's Asian session, remaining in the area of record highs, updated the day before. As before, support for the instrument is provided by fears of a sharp increase in the number of new cases of COVID-19, which may push countries to return to quarantine restrictions. The dynamics in the United States is of particular concern, as the rates there remain the highest in the world, and so far the number of infected people has exceeded 3 million.

Morning Market Review

EUR/USD

EUR shows a downtrend against USD during today's Asian session, continuing the correctional decline which started the day before when the instrument retreated from its local highs since June 11. The appearance of the "bearish" trend was driven by concerns about the rapid increase in the number of new cases of coronavirus in the United States, as well as yesterday's publication of good macroeconomic statistics from the USA. Initial jobless claims for the week ending July 3 decreased from 1.413M to 1.314M, which was better than market expectations. Continuing Jobless Claims for the week ending June 26 decreased from 18.76M to 18.062M, which also turned out to be better than the forecast of 18.95M.

GBP/USD

GBP is lowering against USD during trading at today's Asian session. The instrument retreats from its local highs, updated the day before, being under pressure from technical factors, while the overall picture on the market changes slightly. GBP is still supported by rumors of marked progress on the issue of a trade agreement between the UK and the EU. In addition, investors responded positively to the UK Treasury Secretary's plan for additional support to the British economy, presented on Wednesday. USD, in turn, is strengthening as a safe haven currency, since the latest statistics on the dynamics of the incidence of coronavirus in the US and the world cause more and more anxiety and concern.

NZD/USD

NZD is going down against USD during today's morning session, retreating from local highs, updated on Thursday. The decrease in the instrument is of technical nature, since not much interesting macroeconomic statistics is published. In addition, the demand for safe assets is rising amid a sharp increase in the number of cases of COVID-19 in the United States. Despite record incidence rates, the US authorities are in no hurry to return to quarantine restrictions, so it is not yet clear how soon it will be possible to take control of the new outbreak of the epidemic. New Zealand macroeconomic statistics released on Friday do not have a significant impact on the dynamics of the instrument. Electronic Card Retail Sales in June grew by 8% YoY after a decrease of 6% YoY last month.

USD/JPY

USD shows a steady decline against JPY during today's Asian trading session, updating local lows since June 26. The instrument loses about 0.25%, testing the level of 107.00 for a breakdown. USD is falling against JPY amid a timid correctional growth attempt at the end of the week against many of its other competitors. The disturbing statistics on the dynamics of the incidence rate in the USA are affecting, which threatens the return of new quarantine restrictions and additional measures to support the economy. On Friday, JPY is supported by macroeconomic statistics published in Japan. In June, the Producer Price Index increased by 0.6% MoM after a decline of 0.5% MoM in the previous month. Analysts had expected growth of 0.4% MoM. In annual terms, the index for the same period decreased by 1.6% YoY after rising by 2.8% YoY a month earlier. Analysts had expected decline by 1.9% YoY.

XAU/USD

Gold prices are falling, retreating from their record highs. The instrument is testing an important psychological level of 1800.00 for a breakdown. The appearance of the "bearish" trend is due to the general strengthening of USD in the market, as well as technical factors for correcting long profit. At the same time, the continuing geopolitical risks, as well as the rapid increase in the number of new cases of coronavirus, provide significant support to gold. Against the backdrop of record incidence rates in the United States, analysts believe that the recovery of the US economy may slow down significantly, and authorities will be forced to return some quarantine restrictions and announce additional measures to support the national economy.

EUR/USD

EUR has shown steady growth against USD during today's Asian session, recovering from a decline last Thursday from new local highs since June 11. The recovery of the "bullish" trend of the instrument is due to optimistic investor sentiment regarding the prospects for the European economy. In addition, alarming statistics on the incidence of coronavirus in the United States puts significant pressure on USD. Analysts believe that the growth rate of the US economy will be significantly lower than previously calculated values, which will reduce the economic gap between the US and the eurozone. Today's trading is likely to be fairly calm, given the semi-empty macroeconomic calendar. Attention should be paid only to the speech of the FOMC member John Williams, as well as the publication of the US Federal Budget Balance for June.

GBP/USD

GBP continues moderate growth against USD during today's morning trading, updating local highs since June 16. GBP takes advantage of the weak USD, which is under pressure from alarming statistics on the coronavirus. In addition, British investors are optimistic about the prospects for a trade agreement between the EU and the UK. Friday's US statistic was worse than expected. The Producer Price Index in June showed a decline of 0.8% YoY, while investors predicted a drop of only 0.2% YoY. In monthly terms, the production inflation indicator fell by 0.2% MoM against the forecast for growth of 0.4% MoM. Today, investors expect the speech of the head of the Bank of England, Andrew Bailey, who may present new forecasts for the British economy in the near future.

AUD/USD

AUD is showing insignificant growth against USD during today's Asian session, recovering from a "bearish" end of trading last week. Investors are buying AUD amid taking a short profit on the instrument, while fundamentally the picture is changing little. Moderate support for the pair is provided by the gradual recovery of the global economy; however, alarming data indicating a sharp increase in the incidence of coronavirus, inhibit the growth of "bullish" sentiment. USD, however, also does not receive significant support from the deterioration of the epidemiological situation in the world. Interesting macroeconomic statistics from Australia will appear on Tuesday, when the data from the National Bank of Australia on business sentiment in June will be published.

USD/JPY

USD shows flat dynamics against JPY during today's Asian session. Investors are cautious against the backdrop of growing alarming statistics on the incidence of COVID-19 in the world. The US continue updating record highs of daily infections, but in many other countries, the situation is gradually deteriorating as well. Published macroeconomic statistics from the United States and Japan are often worse than market expectations, but traditionally more attention is drawn to American data. Slight support for JPY on Monday is provided by Tertiary Industry Activity Index. In May, indicator decreased by 2.1% MoM, while in April the index showed a decrease of 6% MoM.

XAU/USD

Gold prices are rising at the beginning of the week, again located above 1800.00. Support for the instrument is still provided by a new surge in the incidence of coronavirus, which has led to an increase in demand for safe assets. The most alarming situation is in the USA, where the number of daily infections exceeded a record high of 60 thousand people. Additional support for gold was provided by a decrease in the yield of ten-year treasury bonds in the USA to the minimum values since April of this year.

Morning Market Review

EUR/USD

EUR shows flat trading dynamics against USD during today's Asian session, consolidating near 1.1340 after active growth the day before. The growth of EUR at the beginning of the week was of a technical nature, while there are still not many fundamental factors for the uptrend in the instrument. European investors today are focused on the statistics on consumer inflation in Germany in June. In annual terms, inflation retained the same rate of growth (0.9% YoY). In addition, ZEW Institute will report on the dynamics of business sentiment in Germany for July. In the eurozone, the data on industrial production for May, as well as a Bank Lending Survey will be released.

GBP/USD

GBP shows ambiguous dynamics of trading during today's morning session. The instrument is consolidating at 1.2550 after an active decline the day before, which interrupted the short-term upward rally for the instrument. GBP retreated from its monthly local highs amid the taking of long profits, while Monday's macroeconomic background remained rather meager. In addition, the negative factors associated with the rapid increase in new cases of COVID-19 infections dominate the market, which reduces investor interest in risk. Today, May statistics on the dynamics of GDP and industrial production in the UK was released. The British economy showed growth of 1.8% MoM in May after a decline of 20.4% MoM in April. Industrial production in May grew by 6.0% MoM. However, these positive statistics cannot provide serious support to GBP just yet.

AUD/USD

AUD is trading ambiguously during today's Asian session, located near 0.6950. AUD is under pressure against the background of the corrective growth of USD, which is strengthening at the beginning of the week due to technical factors. Today's macroeconomic statistics from Australia provide additional support to the instrument. National Australia Bank's Business Confidence in June rose from –20 to 1 point, while analysts expected a sharp decline to –87 points. National Australia Bank's Business Conditions for the same period strengthened from –24 to –7 points, which also turned out to be significantly better than market forecasts of –39 points. Interesting publications in Australia are expected on Thursday when the June labor market report is released.

USD/JPY

USD shows flat dynamics against JPY during today's Asian session. Having shown quite active growth the day before, and having retreated from local lows of last Friday, USD does not get noticeable support in the market, since fundamentally the picture is changing little. Development of the "bullish" trend on the instrument on Tuesday is promoted by poor macroeconomic statistics from Japan. Industrial Production in May decreased from –25.9% YoY to –26.3% YoY, which turned out to be worse than neutral forecasts. In monthly terms, the production rate decreased by 8.9% MoM after a decline of 8.4% MoM in the previous month. At the same time, the percentage of Capacity Utilization decreased by 11.6% after falling by 13.3% in April.

XAU/USD

Gold prices are falling slightly this morning, developing flat trading dynamics in the short term. The instrument is still located near its record highs and is testing the level of 1800.00 for a breakdown. Support for gold is provided by growing market uncertainty associated with a sharp increase in the dynamics of the incidence of coronavirus in the United States, Brazil, India and several other countries. Investors are looking forward to the news regarding a possible vaccine against the virus, which is currently actively being developed by several states and private companies. The difficult geopolitical situation in the world also adds to the negative background. Earlier, Donald Trump said that he is not considering the prospect of resuming trade negotiations with China so far.