Forex News Analysis by LiteForex

Morning Market Review
2019-12-27

EUR/USD

EUR has shown strong growth against USD during today's Asian session, developing an uncertain "bullish" momentum from the beginning of the week. The instrument is testing the level of 1.1200, adding about 0.20%. The growth of the pair is largely due to technical factors, which are repeatedly amplified against the background of extremely low volatility and the "thin" market. During the day, investors are awaiting the publication of the Eurozone Economic Bulletin, as well as data on Retail Sales in Spain and the Unemployment Rate in Italy in November.

GBP/USD

GBP is correcting upwards against USD during today's Asian session, trading near local highs of December 23, updated the day before. The instrument adds about 0.10% and is actively testing the level of 1.3000 for a breakout. The growth of the British currency is largely due to technical factors, since there are few interesting macroeconomic statistics at the market, and overall volatility remains low due to the Christmas and New Year holidays. Macroeconomic data from the USA published the day before turned out to be contradictory. Initial Jobless Claims for the week ending December 20 decreased from 235K to 222K, which was slightly better than forecasts of 224K. In turn, Continuing Jobless Claims for the week ending December 13 decreased from 1.725M to 1.719M, which turned out to be worse than market expectations of 1.691M.

NZD/USD

NZD continues quite active growth against USD, updating record highs of July 25. The instrument is trading near 0.6680, gaining 0.15%. The market is still characterized by extremely low volatility, as many traders prefer to stay out of the market, having gone on Christmas holidays. Moderate support for NZD, in addition to a number of technical factors, is provided by the pending signing of a trade deal between the United States and China. On Wednesday, the PRC representatives said they were in close contact with the US on the issue of agreeing on the details of the signing ceremony. In addition, the market was optimistic about China’s intention to reduce import duties on a number of US products from the beginning of 2020.

USD/JPY

USD is falling against JPY during today's Asian session, losing ground earned the day before. The instrument returned to levels below 109.50. Investors are focused on macroeconomic statistics from Japan today. CPI Tokyo Ex Food and Energy accelerated in December from 0.6% YoY to 0.8% YoY, which turned out to be better than neutral forecasts. At the same time, Retail Sales in November decreased by 2.1% YoY after a record drop of 7% in October. Analysts had expected decline by 1.7% YoY. Over the same period, Industrial Production fell by 8.1% YoY after a decrease of 7.7% YoY last month. Analysts had expected growth by 0.9% YoY.

XAU/USD

Gold prices show a slight increase during today's Asian session, consolidating after a confident "bullish" rally in the last three trading sessions. The growth of the instrument is about 0.13%. The uptrend in prices is due to low trading volumes at the market due to Christmas and New Year holidays, as well as fluctuations in stock exchanges. In turn, pressure on gold is exerted by the growing prospect of signing a trade agreement between the United States and China, which could mark the beginning of a massive improvement in relations between countries, as well as a significant reduction in the risks of a slowdown in the global economy. However, the date of signing the first phase of the agreement is still unknown, and skeptics point to a lot of unresolved issues between the parties of the trade conflict.

Morning Market Review
2019-12-30

Current trend

GBP starts regaining positions after a strong decline. The reason for the uptrend was in weakening of USD. In the Brexit run-up, the concerns of UK residents are becoming more apparent. At the beginning of next year, the British economy can expect a record decline in population growth. The reason is the reluctance of citizens of Northern Ireland, Scotland and Wales to remain in the UK, since after leaving the EU most benefits will be cancelled, so obtaining Irish citizenship is very popular.

USD is weakening under the pressure of the continued decline in the USD Index, which at the moment is 96.450 points, which corresponds to the levels of the beginning of summer.

Because the stock exchanges will close tomorrow, the dynamics of the pair may continue within the current trend due to the reluctance of investors to take risks and leave positions open for the holidays.

Support and resistance

The downtrend was interrupted, and the price, breaking the resistance line, consolidated above it. The Alligator indicator gave a buy signal, and the AO oscillator duplicated it, showing the transition through the zero line. The growth prospects are high, but the price should consolidate above the highs of December 18 to enter the deal.

Resistance levels: 1.3160, 1.3500.
Support levels: 1.3000, 1.2820.

USD/CAD General review
Current trend

The pair continues to decline, due to both the weakness of the US dollar and the strength of the Canadian one. In the absence of macroeconomic data, CAD is strengthening due to high prices for oil, one of Canada's main export commodities. Quotes are supported by reports of new US air strikes in Iraq and Syria on targets of the Hezbollah military group supported by Iran, which could aggravate the situation in the Middle East. The second support factor was the EIA report. It recorded a decrease in US crude oil inventories by 5.474 million barrels with a forecast of a decrease by 1.724 million.

USD decline is likely to continue this week. There is still no final decision on a trade deal with China, but its signing is expected in early January. The conclusion of a trade agreement could trigger an increase in energy demand and support CAD.

Support and resistance

Price continues to move within the global "triangle" pattern. Today, an attempt has been made to test the support line. However, its breakout requires a large volume of positions, which is not seen on the market right now due to the upcoming holidays.

Indicators are still signaling sales, but closing a weekly candle may change their readings.

Support levels: 1.3020, 1.2840.
Resistance levels: 1.3080, 1.3280.

Morning Market Review
2020-01-08

EUR/USD

Today, during the Asian session, the EUR/USD pair is moderately declining, developing a “bearish” momentum formed yesterday. Tuesday’s EU macroeconomic statistics slightly supported the instrument; however, the market remains unstable amid the intensification of the crisis in US-Iranian relations after the death of a high-ranking Iranian military commander as a result of a US Air Force military operation. In November, EU Retail Sales accelerated growth from +1.7% YoY to +2.2% YoY, which was significantly better than market expectations of +1.3% YoY. Also, the index grew by 1.0% MoM after a decline by 0.3% MoM last month. Consumer inflation data were more restrained. In December, CPI accelerated from +1.0% YoY to +1.3% YoY, which coincided with analysts' forecasts.

GBP/USD

Today, during the Asian session, the GBP/USD pair develops flat trading dynamics in the short term. There was a lack of UK key macroeconomic statistics on Tuesday, so the news from the United States prevailed. Also, the market continues to closely monitor the development of the conflict in the Middle East, fearing the onset of full-fledged military clashes between the US and Iran. Yesterday, it became known that Iran launched missile strikes on two US facilities in Iraq, attacking the Ain al-Assad airbase and Erbil airfield. USD position was supported by data on business activity. In December, according to ISM, the Service PMI grew from 53.9 to 55.0 points, ahead of forecasts by 54.5 points. Today, investors are focused on the UK Halifax House Price Index release for December and the US ADP Nonfarm Employment Change publication for the same period.

AUD/USD

Today, during the Asian session, the AUD/USD pair is growing uncertainly, being corrected after yesterday’s record decline. Now, the instrument has added about 0.08%, testing the level of 0.6871 for a breakout. The price is moderately supported by the data from Australia. Thus, Building Approvals for November rose by 11.8% MoM after a decrease of 7.9% MoM last month. Analysts expected a more modest increase in the rate of +2.0% MoM. In annual terms, the index slowed down the decline from –22.9% YoY to –3.8% YoY.

USD/JPY

Today, during the Asian session, the USD/JPY pair is falling, correcting after growth at the beginning of the week. Now, the instrument is trading at 108.33, while at the opening it fell sharply to 107.64 (a local low since October 10, 2019), which was caused by conflicting reports from the Middle East. After the US missile attack in Iraq, where a high-ranking Iranian general died, the relations between the countries deteriorated sharply, and the market even started talking about the possibility of a large-scale war. Yesterday, there was information that Iran launched two missile attacks on US military facilities in Iraq. Published Japanese macroeconomic statistics affected JPY ambiguously. Thus, Average Cash Earnings for November fell by 0.2% YoY after zero dynamics last month. Analysts expected a significant increase of +0.6% YoY. At the same time, the consumer confidence index in December unexpectedly increased from 38.7 to 39.1 points against the forecast of 38.0 points.

XAU/USD

Today, during the Asian session, gold prices are again actively rising, renewing record highs. At the opening of the trading session on Wednesday, the instrument managed to reach the level of 1611.06, above which gold was previously traded in March 2013 but later the rate was noticeably corrected. The reason for such a powerful growth is the US-Iranian conflict in the Middle East, which could develop into a full-fledged war. A meeting of the UN Security Council is due to take place in New York on Thursday, at which, as expected, ways to resolve the situation will be discussed. However, previously, the media reported that the United States refused a visa to Iranian Foreign Minister Mohammed Jawad Zarif, which could only increase tension between the countries.

Morning Market Review
2020-01-09

EUR/USD

EUR is recovering against USD during today's Asian session, retreating from the local low at 1.1100, updated the day before. Moderate support for the instrument, in addition to a number of technical factors, is provided by some market stabilization after optimistic reports from Donald Trump, who made it clear that he is not considering the possibility of starting a war with Iran. After the missile strike inflicted by Iran on American military bases in Iraq, investors were visibly nervous; however, the words of the US president in addressing the nation returned the market sentiment back to normal. Washington decided to confine itself only to new economic sanctions. In turn, macroeconomic statistics published in Europe on Wednesday turned out to be controversial, which contributed to the strengthening of "bearish" sentiments. Industrial Sentiment in the euro area industry in December fell from –9.1 to –9.3 points, with investors forecasting a slight increase to –9 points. Business Climate for the same period fell from –0.21 to –0.25 points, which also turned out to be worse than market expectations of –0.16 points.

GBP/USD

GBP is showing slight growth during today's Asian session, adding about 0.11%. The instrument is supported by the de-escalation of the US-Iran conflict after optimistic statements by Donald Trump, who decided to confine himself to only economic measures of influence on Tehran. Investors also take a lead from the publication of BRC Retail Sales Monitor. In December, comparable sales grew by 1.7% YoY after a decline of 4.9% YoY last month. The indicator did not reach its forecasts of 2% YoY. During the day, investors expect the speech of the Bank of England Governor Mark Carney, and tomorrow the attention of traders will be focused on the publication of the US labor market report for December.

AUD/USD

AUD is again showing flat dynamics against USD, trying to reverse into correctional growth after a sharp decline on Tuesday. Moderate support for the instrument is provided by the fact of temporary stabilization of US-Iran relations, which have noticeably worsened after the US Air Force attack on Baghdad airport killing a high-ranking Iranian general. Addressing the nation yesterday, Donald Trump stressed that the US are not looking for a military solution to the conflict and announced only new economic sanctions. Macroeconomic statistics released during today's Asian session is controversial. Investors were optimistic about data showing an increase in Exports from Australia in November by 2%. Imports for the same period lost about 3%, which led to a marked increase in the trade surplus from AUD 4.502B to 5.800B, which still turned out to be slightly worse than the forecasts of AUD 5.915B.

USD/JPY

USD shows moderate growth against JPY during today's Asian session, continuing the development of a powerful "bullish" impulse that formed yesterday. USD adds about 0.13%, testing the level of 109.20 for a breakout. The main factor in the sharp depreciation of the yen was the de-escalation of the US-Iran conflict after Donald Trump addressed the nation, which significantly reduced the demand for safe haven currencies. Additional support to USD was provided by ADP Nonfarm Employment Change, which reflected the growth of 202K jobs in December, which was significantly higher than market expectations of 160K. Last month, employment growth in the private sector was only 124K. Tomorrow, investors are awaiting the publication of the December report on the US labor market.

XAU/USD

Gold prices are relatively stable during today's Asian session after a sharp decline yesterday when the instrument retreated from its 7-year highs. The reason for yesterday's sharp increase in gold prices was Iran’s retaliatory attack on US military bases located in Iraq. However, in the evening of the same day, addressing the nation, Donald Trump ruled out the use of force in the current phase of the conflict, which brought down the growth in demand for safe assets, and the instrument declined sharply. USD was also supported by the ADP Nonfarm Employment Change, which turned out better than market expectations.

Morning Market Review
2020-01-13

EUR/USD

EUR shows active growth during today's Asian session, continuing the development of the correctional impulse that formed at the end of last week. The instrument adds about 0.17%, testing the level of 1.1130 for a breakout. Friday's data on the December US labor market turned out to be worse than market expectations, which contributed to the development of "bearish" sentiments towards USD. Nonfarm Payrolls grew by 145K in December, contrary to forecasts of an increase of 164K. Last month the value increased by 256K. In December, Average Hourly Earnings slowed from 3.1% YoY to 2.9% YoY with neutral forecasts. At the same time, the Unemployment Rate remained at 3.5% as expected.

GBP/USD

GBP is trading slightly lower against USD during today's Asian session, opening with a slight gap down. The instrument is testing the level of 1.3030, located not far from the local lows of January 9. The pressure on GBP is exerted by the approach of the next Brexit deadline, and despite the fact that at the moment the British government has no serious obstacles to its implementation, market sentiment remains alarming. The British economy is not in the best condition, so traders fear that the country's exit from the EU could be very painful. Today, investors expect the publication of statistics from the UK. In particular, data on Industrial Production and GDP dynamics for November are expected to be released.

AUD/USD

AUD is showing strong growth against USD during today's Asian session, continuing to develop the "bullish" momentum formed at the end of last week. The instrument adds about 0.13%, approaching the level of 0.6920. Support for AUD is provided by rather weak data on the December US labor market, which turned out noticeably worse than their forecasts. In addition, data on Retail Sales in Australia were optimistic. In November, sales grew by 0.9% MoM after zero dynamics last month. Analysts had expected growth by 0.4% MoM. Today, moderate support for the instrument is provided by TD Securities Inflation data from Australia. In December, the indicator increased by 0.3% MoM and 1.4% YoY after rising by 0.0% MoM and 1.5% YoY last month.

USD/JPY

USD shows moderate growth against JPY during today's Asian session, trading near a local high of December 26, 2019 (109.67). The dollar managed to update local highs at the end of last week, despite the fact that closer to the end of the afternoon session the instrument went into the red zone, falling under the pressure of a weak report on the US labor market in December. In general, the demand for safe assets remains low, although it cannot be said that investors completely forgot about the conflict between the US and Iran. A certain tension undoubtedly persists. On Friday, for example, the US administration imposed new sanctions on the Iranian steel industry, which is unlikely to further normalize relations.

XAU/USD

Gold prices again returned to decline during today's Asian session after a brief increase at the end of last week, when the position of USD weakened after the publication of a disappointing labor market report for December. More confident growth of the instrument was hindered by positive trends on stock exchanges, as well as low demand for safe assets. In turn, by the end of January, demand for gold may show moderate growth due to the approach of the Chinese New Year.

Morning Market Review
2020-01-14

EUR/USD

EUR shows a slight increase against USD during today's Asian session, developing a "bullish" momentum formed at the end of last trading week. On Monday, the buying sentiment for EUR was supported by weak December report on the US labor market, which was released last Friday. There were few interesting macroeconomic statistics at the beginning of the new week, so investors concentrated on previous publications, waiting for the signing of a trade deal between the United States and China. Today, the ECB representative Yves Mersch is scheduled to speak; however, the main attention will be focused on statistics on consumer inflation from the US.

GBP/USD

GBP shows ambiguous trading dynamics during today's Asian session, testing for a breakdown the important level of 1.3000, which it reached for the first time in the current calendar year. Pressure on the instrument is exerted by weak macroeconomic statistics from the UK published on Monday. Industrial Production in November decreased by 1.2% MoM after an increase of 0.4% MoM a month earlier. Analysts expected a decline of 0.1% MoM. In annual terms, production fell by 1.6% YoY after a decline of 0.6% YoY in October. Forecasts suggested a decrease of 1.4% YoY. GDP in November also showed negative dynamics, having decreased by 0.3% MoM after a slight increase of 0.1% a month earlier. Experts expected zero dynamics. Such weak results of the British economy led to the resumption of talk about the possibility of a new interest rate cut by the Bank of England.

AUD/USD

AUD shows multidirectional trading dynamics during today's Asian session, consolidating after updating local highs of January 7 the day before. The instrument is trading near the opening mark, testing the level of 0.6900 for a breakdown. Investors focus on the block of statistics on exports and imports from China. In addition, traders expect the imminent signing of a trade agreement between the United States and China, which provides significant support to the pair. Exports from China in December grew by 7.6% YoY after a decline of 1.3% YoY a month earlier. Experts expected an increase of 3.2% YoY. Imports for the same period rose sharply by 16.3% YoY after rising by 0.5% YoY in November. The indicator also turned out to be significantly better than its forecasts of 9.6% YoY.

USD/JPY

USD is showing moderate growth against JPY during today's Asian session, updating the highs of May 2019. The pair is trading near 110.05, adding about 0.12%. Published macroeconomic statistics from Japan has a mixed effect on JPY. Bank Lending in Japan in December slowed from the previous 2.1% YoY to the current 1.8% YoY, which turned out to be worse than analysts had expected. Current Account n.s.a. fell in November from JPY 1816.8B to 1356.8B, which was only slightly better than forecasts of JPY 1423.3B. The balance of foreign trade in November showed a deficit of JPY 2.5B, while in October the balance remained surplus at JPY 254B. Experts expected a larger deficit of JPY 412.6B.

XAU/USD

Gold prices show negative dynamics during today's Asian session, developing a "bearish" momentum formed yesterday. The instrument is trading near 1535.00, losing about 0.60%. The pressure on gold is exerted by moderate optimism, which investors show in anticipation of a trade agreement between the United States and China. The ceremony of signing the first phase of the contract should be held at the White House on January 15. De-escalation of tensions in the Middle East also contributes to lower demand, after the United States decided to limit itself to economic measures to influence Tehran. Last Friday, Washington imposed additional sanctions on Iran, threatening with new measures if necessary.

Morning Market Review
2020-01-15

EUR/USD

EUR shows ambiguous dynamics of trading against USD during today's Asian session, developing a flat trend in the ultra-short term. The pair strengthens by about 0.05%, receiving support after the publication of mixed macroeconomic statistics from the US. Consumer Price Index in the US in December grew by 0.2% MoM, slowing down from the previous value of 0.3% MoM. Core Consumer Price Index in December slowed from 0.2% MoM to 0.1% MoM. In annual terms, however, the price index rose in December from 2.1% YoY to 2.3% YoY. During the day, investors expect publication of statistics on industrial production in the euro area in November. In addition, a preliminary trade agreement between the United States and China is expected to be signed today.

GBP/USD

GBP shows ambiguous dynamics during today's Asian session, remaining under pressure from weak macroeconomic statistics and uncertain prospects after Brexit in late January. Additional pressure on the instrument is exerted by the likelihood of a decrease in interest rates by the Bank of England in the very near future. At the beginning of the week, investors expected a 50% chance of a rate cut in January, but full-fledged changes in the monetary policy vector will probably occur closer to Q2 2020. Today, traders expect the publication of data on Consumer and Industrial inflation in the UK in December. In addition, the markets will be interested in a statement by the representative of the Bank of England Michael Saunders.

NZD/USD

NZD declines slightly during today's Asian session, developing a weak "bearish" momentum formed at the beginning of the current trading week. Investors hesitate amid the publication of mixed macroeconomic statistics and expect new drivers to appear. The data from New Zealand published yesterday were controversial. NZIER Business Confidence index in Q4 2019 decreased by 21% QoQ after falling by 40% QoQ in Q3. The number of Building Permits issued in November decreased sharply by 8.5% MoM after a 1.3% MoM decrease in the previous month. Analysts counted on the appearance of positive dynamics (+2.1% MoM). Food Price Index in December also showed a decrease of 0.2% MoM, continuing to develop the negative dynamics of the previous month (–0.7% MoM). Experts counted on zero growth.

USD/JPY

USD is falling against JPY during today's Asian session, retreating from local highs, updated the day before. The instrument fell by 0.08% and is trying to consolidate below 110.00. In addition to strengthening technical factors, the publication of mixed macroeconomic statistics on consumer inflation from the US contributes to the USD decline. Today, investors are waiting for the signing of a trade agreement between the United States and China, which may provide moderate support for USD. Despite the fact that the market took into account the fact of achieving preliminary consensus in a trade dispute between the parties, the formal completion of this process will have a positive impact on demand for risk.

XAU/USD

Gold prices are showing moderate growth during today's Asian session, retreating from local lows of January 3, updated the day before. The instrument grew by more than 0.3% and is trying to consolidate above the level of 1550.00. Asset growth is mainly driven by technical factors, as well as corrective sentiment in USD amid the publication of mixed macroeconomic statistics on consumer inflation. In turn, the growth of stock markets, as well as the pending signing of a trade agreement between the United States and China, put pressure on the position of gold.

Morning Market Review
2020-01-16

EUR/USD

EUR shows ambiguous dynamics of trading against USD during today's Asian session, being located near the level of 1.1150. Investors are taking a lead from the publication of weak macroeconomic statistics from the euro area and the long-awaited signing of the first phase of the trade agreement between the US and China. Weak data from Europe did not prevent moderate growth of EUR. Industrial Production in the euro area in November decreased by 1.5% YoY after a decrease of 2.6% YoY a month earlier. Analysts had expected decline by 1.1% YoY. In monthly terms, production grew by 0.2% MoM, but did not reach forecasts of 0.3% MoM. In October, the indicator decreased by 0.9% MoM. The euro area Trade Balance in November fell from 24B to 19.2B euros, which also turned out to be worse than the expectations of 21.2B euros. Today, traders are focused on the publication of statistics on Consumer Inflation from Germany, as well as the release of the ECB meeting minutes and a speech by Christine Lagarde.

GBP/USD

GBP is showing slight growth against USD during today's Asian session, adding about 0.07%. The instrument has been developing correctional dynamics since Tuesday, updating local lows of December 26. The growth of the currency pair is largely facilitated by technical factors, while the macroeconomic background from the UK remains predominantly negative. Moreover, investors are concerned about the imminent Brexit and possible measures to support the British economy, which the Bank of England will have to resort to. The statistics on consumer inflation was published yesterday in the UK. Consumer Price Index in December showed zero dynamics after an increase of 0.2% MoM in November. Analysts had expected it to maintain the same growth rate. In annual terms, inflation slowed down from 1.5% YoY to 1.3% YoY, which also turned out to be worse than expectations.

AUD/USD

AUD is showing uncertain growth against USD during today's Asian session. The instrument strengthens by 0.09% and is trying to consolidate above the level of 0.6900. The pair is supported by the fact that a trade agreement was signed between the United States and China, which can help restore global economic growth. The parties agreed on the mutual protection of intellectual property, a sharp increase in sales of goods from the United States to China, as well as to abandon currency manipulation. In addition, Washington agreed to reduce to 7.5% a series of duties on Chinese goods in the amount of USD 120 billion. Statistics from Australia provides some support to AUD on Thursday. Investment Lending for Homes in November grew by 2.2% YoY after an increase of 1.4% YoY last month. Home Loans for the same period increased by 1.8% YoY, slightly decreasing from the previous value of 2.0% YoY. Analysts had expected growth by 0.4% YoY only.

USD/JPY

USD shows ambiguous dynamics of trading against JPY during today's Asian session, continuing to consolidate after updating local highs on Tuesday. USD is located near the level of 110.00, while not making any attempts to test it for a breakout. Published macroeconomic statistics from Japan has a mixed effect on the instrument. Core Machinery Orders in Japan in November grew by a record 18% MoM after a decrease of 6% MoM in October. Experts expected a much more moderate growth of 3.2% MoM. YoY, the indicator increased by 5.3% YoY as opposed to the decline of 6.1% YoY last month. In turn, the Producer Price Index in December slowed from 0.2% MoM to 0.1% MoM, which turned out to be worse than the neutral forecast of analysts.

XAU/USD

Gold is trading with almost flat dynamics during today's Asian session, consolidating after yesterday's moderate growth. The instrument was supported by concerns about a trade agreement between the US and China, which subsequently did not materialize. Markets were worried by statements by US Treasury Secretary Steven Mnuchin, who noted that import duties on Chinese goods would continue until the second phase of the trade agreement was signed. In fact, Washington decided to reduce the existing tariffs by 2 times, not cancelling them completely.

Morning Market Review
2020-01-17

EUR/USD

EUR shows a slight decline against USD during today's Asian session, developing a "bearish" momentum generated yesterday when the pair updated its local highs of January 7. The pressure is exerted by macroeconomic statistics on Retail Sales in the US for December published on Thursday. Retail Sales Ex. Autos in December grew by 0.7% MoM after zero dynamics in November. Analysts had expected growth by 0.5% MoM. Retail Control indicator in December grew by 0.5% MoM, accelerating from the previous value of –0.1% MoM. Experts predicted an increase of 0.4% MoM. During the day, investors expect the release of European statistics on consumer inflation for December.

GBP/USD

GBP is trading near zero during today's Asian session, testing the level of 1.3070 for a breakdown. The currency pair is prone to a slight technical correction at the end of this week after moderate growth since Tuesday, when GBP retreated from its lows of December 26. Moderate support for GBP is provided by slightly lower fears about the Bank of England interest rate cut in January. Currently, such a probability is estimated at 50%, while back on Wednesday it exceeded 60%. The meeting of the British regulator should be held on January 30, and the current interest rate is 0.75%. Today, investors are expecting the publication of statistics on Retail Sales in the UK in December. Analysts are very optimistic, so the data may well contribute to the continuation of the "bullish" trend of the instrument.

AUD/USD

AUD shows an uncertain decline against USD during today's Asian session, while maintaining a flat picture in the short term. The instrument loses about 0.1% and is trying to consolidate below 0.6900. The instrument is under pressure of weak macroeconomic statistics from Australia. HIA New Home Sales in November showed a decline of 0.5% MoM, repeating the dynamics of October. Investors expected a steady increase of 5.6% MoM. Chinese data, in contrast, were optimistic. China's GDP in Q4 2019 showed an increase of 1.5% QoQ, which coincided with market expectations. In annual terms, the Chinese economy added 6%, also justifying forecasts. Retail Sales in December grew by 8% YoY, which was better than expectations of +7.8% YoY.

USD/JPY

USD strengthens against JPY during today's Asian session, updating local highs of May 23. The growth of the pair is promoted by a low demand for safe assets, which has further declined after the signing of a trade agreement between the United States and China. In turn, the macroeconomic statistics from Japan provides JPY with tangible support. Quite strong data on Core Machinery Orders were released on Thursday. In November, Machinery Orders grew by 18% MoM after a decline of 6% MoM. Analysts expected growth of only 3.2% MoM. In annual terms, the indicator added 5.3% YoY after a decrease of 6.1% YoY in October, which also turned out to be much better than the forecast of –5.4% YoY.

XAU/USD

Gold prices show a slight increase during today's Asian session, gradually recovering from a decline the day before. The instrument adds about 0.09%, testing the level of 1555.00 for a breakout. The signing of a trade agreement between the United States and China contributed to a short-term reduction in the value of the asset; however, investors are still concerned about the rather large number of unresolved issues between the parties. Negotiations in the framework of the second phase have already begun, and so far there is no reason to believe that they will be more successful. Demand for gold is also supported by the approach of the Chinese New Year, when jewelry sales traditionally increase.