Forex News Analysis by LiteForex

EUR/USD

EUR shows a slight correctional growth against USD during today's Asian session, retreating from new three-year lows, updated the day before. The reason for Tuesday's strengthening of the "bearish" sentiment was the extremely weak macroeconomic statistics on Economic Sentiment in Germany from ZEW. ZEW Current Situation index in February fell from –9.5 to –15.7 points with a forecast of a decrease to –10.3 points. ZEW Economic Sentiment index for the same period fell from 26.7 to 8.7 points with a forecast of 21.5 points. ZEW Economic Sentiment index in the euro area also sharply decreased from 25.6 to 10.4 points, contrary to forecasts of growth to 30 points. During the day, investors expect publication of information on the Current Account balance and Construction Output in the euro area for December. Closer to the end of the afternoon session, the focus will shift to the publication of the FOMC Meeting Minutes on the interest rate.

GBP/USD

GBP is trading with ambiguous dynamics during today's Asian session, continuing to consolidate near 1.3000. Short-term support for the instrument is provided by the expectation of positive changes in the fiscal policy of the UK government after the appointment of the new Minister of Finance Rishi Sunak. Sunak confirmed his intention to introduce the new state budget on March 11, which strengthened optimism in the market. Macroeconomic statistics published on Tuesday turned out to be contradictory and, on the whole, contributed to the development of negative dynamics for the instrument. In December, Average Earnings Including Bonus slowed down from 3.2% 3MoY to 2.9% 3MoY, which turned out to be worse than market expectations of 3% 3MoY. At the same time, the Unemployment Rate remained at the previous level of 3.8%, and Claimant Count Change in January increased from 2.6K to 5.5K, which is significantly lower than market expectations of 22.6K.

AUD/USD

AUD is showing moderate growth against USD during today's Asian session, correcting after a sharp decline the day before. The instrument adds about 0.13%, testing the level of 0.6700 for a breakout. Strengthening the "bearish" mood was facilitated by recent statements by Apple representatives who expressed doubts about the ability to implement their original sales plan, set three weeks ago. Apple cites a reduction in production and a decrease in demand in China due to the continued spread of coronavirus. Today's Australian macroeconomic statistics provide insignificant support to the instrument. Westpac Leading Index in January showed an increase of 0.05% MoM after rising 0.01% MoM in the previous month.

USD/JPY

USD is rising against JPY during today's Asian session, approaching the local highs updated on December 12. USD adds about 0.15%, testing the level of 110.00 for a breakout. The development of the uptrend in the instrument today is facilitated by the publication of quite weak macroeconomic statistics from Japan. Machinery Orders in December fell by 12.5% MoM and 3.5% YoY after rising by 18% MoM and 5.3% YoY in the previous month. Analysts had expected a decrease of 9% MoM and 1.3% YoY. Japanese Exports went down by 2.6% YoY in January after decline by 6.3% YoY in the previous month. Imports for the same period decreased by 3.6% YoY after a decline of 4.9% YoY in December. The total Trade Deficit in January reached 1312.6B Japanese yen.

XAU/USD

Gold prices are consolidating during today's Asian session near the new local highs (1600.00) after the active growth of the instrument the day before. Demand for the asset increased markedly on Tuesday after a warning from Apple that the company was unlikely to implement its sales plan due to a reduction in production in China amid the continued spread of coronavirus. On Wednesday, investors are focused on macroeconomic statistics from the USA on Construction dynamics and Producer Price Indices for January. In addition, markets are awaiting the publication of the latest Minutes of the FOMC meeting.

EUR/USD

Today, during the Asian session, the EUR/USD pair is trading in a downward direction, returning to decline after a corrective growth the day before. The strengthening of the euro was mainly due to technical factors, as the single currency remains strongly oversold and is trading near three-year lows. The macroeconomic background, however, did not contribute to the growth of the instrument. Thus, EU Construction Output for December fell by 3.7% YoY after rising by 1.4% YoY in the previous month. Analysts had expected an increase of 1.4% YoY. In monthly terms, the production fell by 3.1% MoM after a slight increase of 0.74% for November. During the day, European investors expect the publication of information on the dynamics of producer prices for January in Germany. In addition, the ECB will publish the Account of Monetary Policy Meeting.

GBP/USD

Today, during the Asian session, the GBP/USD pair is trading near zero, consolidating near local highs since February 11, which were achieved due to a steady GBP decline the day before. The British currency almost completely ignored the strong national statistics on the dynamics of consumer inflation. Instead, investors focused on the prospects for EU-UK negotiations and discussed upcoming fiscal changes and increased government spending. The consumer price index for January sharply accelerated from +1.3% YoY to +1.8% YoY, which was better than market expectations of +1.5% YoY. In monthly terms, however, consumer inflation decreased by 0.3% MoM after December's zero dynamics. Analysts predicted a 0.4% YoY decrease in the index. On Thursday, traders are focused on the UK retail sales statistics for January, as well as the publication of the CBI Industrial Trends Orders for February.

NZD/USD

Today, during the Asian session, the NZD/USD pair is significantly reduced, renewing local lows since November 13. Now, NZD has lost about 0.38% and is preparing to test the level of 0.6350 for a breakdown. The currency is falling amid the publication of optimistic macroeconomic American statistics. Yesterday, traders were pleased by a confident increase in the producer price index and an improvement in the housing market. Building Permits for January increased by 9.2% MoM after a decrease of 3.7% MoM in the previous month. Analysts had expected a decrease of 0.1% MoM. In addition, investors are still wary of a slowdown in the global economy due to continued threats of the spread of coronavirus and a weakening Chinese economy. However, the market appreciated the efforts made by Beijing to contain the epidemic. On Thursday, it became known that the Central Bank of China decided to reduce the interest rate by 10 basis points to 4.05%.

USD/JPY

Today, during the Asian session, the USD/JPY pair shows flat dynamics, consolidating near new record highs, renewed the day before, when the yen showed its strongest decline in 6 months. JPY is under pressure by a poor national macroeconomic statistics, which may indicate the onset of a recession in the country. Data released on Monday reflected a sharp decline in Japan's Q4 2019 GDP by 6.3% YoY after an increase of 1.8% YoY in the previous month. In quarterly terms, GDP lost 1.6% QoQ after a slight increase of 0.4% QoQ earlier.

XAU/USD

Today, during the Asian session, the price of gold is slightly reduced, retreating from local highs, updated due to yesterday’s moderate growth of the instrument. Although the market positively assesses China’s efforts to contain the spread of coronavirus, concerns about negative economic consequences remain, which provides support for shelter assets. Also, uncertain prospects around a possible reduction in the interest rate of the US Federal Reserve positively affect the quotes. The minutes of the Fed meeting published yesterday reflected a certain split in its administration, however, the regulator continues to believe in a strong labor market, and therefore the risks of lowering the rate in the foreseeable future remain insignificant.

EUR/USD

EUR shows a slight increase against USD during today's Asian session, consolidating near three-year lows, once again updated on Thursday. Market problems dominate over EUR, which has been showing the worst results since 2015. Negative macroeconomic statistics, the threat of a recession in the German economy, as well as the uncertain prospects for trade negotiations with the UK negatively affect the dynamics of the instrument. At the end of the week, investors expect the publication of statistics on business activity from Europe, but the forecasts again do not promise anything good for EUR. Manufacturing PMI in Germany may fall in February from 45.3 to 44.8 points; Markit Composite PMI may decline from 51.2 to 50.8 points. In addition, on Friday, traders expect the publication of January statistics on consumer inflation in the euro area.

GBP/USD

GBP demonstrates the development of a technical correction against USD during today's Asian session. The instrument adds about 0.08%, testing the level of 1.2890 for a breakout. The decline in the instrument is due to the growth of USD across the entire market, while optimism regarding the appointment of a new finance minister in the UK is gradually fading into the background. Moreover, GBP ignores quite good macroeconomic statistics coming out of the UK recently. On February 19, the market ignored strong data on consumer inflation. Yesterday's Retail Sales data only briefly hindered the decline in GBP. In January, Retail Sales grew by 0.9% MoM after a decline of 0.5% MoM in the previous month. Analysts had expected growth rate at 0.7% MoM. Today, investors are focused on statistics on business activity from Markit in the UK in February.

AUD/USD

AUD declines against USD during today's Asian session, updating record lows of March 2009. The decline in the instrument proceeds against the backdrop of the steady growth of USD, which looks more profitable against the backdrop of European problems and the uncertainty surrounding the pace of development of the world economy. Additional pressure on AUD is still exerted by the Australian labor market report for January published on Thursday. Employment Change in the country grew by 13.5K jobs after an increase of 28.7K over the past period. At the same time, the Unemployment Rate in January unexpectedly increased significantly from 5.1% to 5.3% with a forecast of 5.2%. Friday's data from Australia also cannot help the instrument recover. Commonwealth Bank’s Services PMI fell in February from 50.6 to 48.4 points, with growth forecast to 52.4 points. Composite PMI in February fell from 50.2 to 48.3 points.

USD/JPY

USD shows a correctional trend against JPY during today's Asian session, consolidating near the local highs of April 2019, which the instrument managed to update due to the steady growth of USD over the past two days. JPY remains under pressure amid talk of a possible recession in the Japanese economy. In addition, there is a marked increase in investor interest in risk in the market amid some stabilization of the situation with the spread of coronavirus. Japanese macroeconomic statistics released on Friday also do not provide any support for JPY. The National Consumer Price Index excluding Food and Energy rose by 0.8% YoY in January, slowing down from the previous value of 0.9% YoY. Jibun Bank's Manufacturing PMI fell from 48.8 to 47.6 points in February, with a positive forecast for growth to 49 points.

XAU/USD

Gold prices show steady growth during today's Asian session, updating record highs of February 2013. The quotes are supported by the continuing uncertainty surrounding the further spread of the coronavirus. Despite all the efforts of the Chinese authorities, as well as the relatively stable statistics of cases, investors are extremely sensitive to any new cases recorded outside of China. Additional support for gold is provided by a significant decrease in JPY, as some investors looking for a safe haven in Japanese currency are now more willing to invest in gold. Today investors are focused on the publication of American statistics on business activity from Markit for February. In addition, the markets expect the Fed representatives, such as Lael Brainard, Loretta Mester, and Richard Clarida to speak today.

EUR/USD

EUR shows ambiguous dynamics of trading against USD during today's Asian session, correcting after an active growth of the instrument last Friday. The reason for the appearance of active uptrend, in addition to a number of technical factors, was good data on the euro area's business activity for February. Markit Manufacturing PMI rose from 47.9 to 49.1 points with a forecast of a decline to 47.5 points. Markit Services PMI for the same period strengthened from 52.5 to 52.8 points, which also turned out to be better than market expectations. Composite Manufacturing PMI in February rose from 51.3 to 51.6 points with a forecast of 51 points. German data turned out to be positive as well. Markit Manufacturing PMI rose sharply from 45.3 to 47.8 points, while the market expected a decline to 44.8 points. On Monday, traders expect the publication of IFO statistics on business optimism in Germany for February. Otherwise, given the rather meager economic calendar, a rather quiet start to the new week is expected.

GBP/USD

GBP is trading near zero during today's Asian session, consolidating near local highs, updated at the end of last week, when it managed to show corrective growth. Macroeconomic statistics published on Friday from the UK and the US turned out to be mixed, but only strengthened the technical factors for the oversold pound. Markit Services PMI in the UK declined from 53.9 to 53.3 points in February, which was 0.1 points worse than expectations. At the same time, Manufacturing PMI over the same period unexpectedly increased from 50 to 51.9 points with a negative forecast of a decrease to 49.7 points. As for American statistics, it turned out to be noticeably worse. Markit Manufacturing PMI fell in February from 51.9 to 50.8 points, while the same indicator in the services sector fell from 53.4 to 49.4 points, breaking the 50-point barrier.

NZD/USD

NZD shows a slight increase against USD during today's Asian session, retreating from new local lows updated at the end of last week. The instrument opened with a negative gap, and so far only technical factors serve as a reason for its short-term growth, while macroeconomic statistics from New Zealand leave much to be desired. In Q4 2019, Retail Sales in New Zealand slowed from 1.7% QoQ to 0.7% QoQ. Retail Sales ex Autos for the same period increased by 0.5% QoQ after an increase of 1.9% QoQ in the previous period. Credit Card Spending in January increased slightly from 3.5% YoY to 3.7% YoY, but did not reach the expected values of 5.1% YoY. During the day, investors expect publication of Chinese statistics on the dynamics of industrial production and retail sales for January.

USD/JPY

USD is again trading higher against JPY during today's Asian session. USD wins back part of the positions lost at the opening and is preparing to consolidate above 111.60–111.70. Investors assess the prospects for the Bank of Japan to make changes in monetary policy amid the spread of coronavirus outside of China and the release of disappointing statistics on the state of the Japanese economy. Last Sunday, the head of the Japanese regulator, Haruhiko Kuroda, again noted the readiness of the Bank of Japan for the most decisive action in order to offset the consequences of the epidemic for the Japanese economy.

XAU/USD

Gold prices show steady growth during today's Asian session, updating record highs of February 2013. The reason for maintaining the positive dynamics on the instrument is the previous fears regarding the further spread of the coronavirus epidemic. Investors are worried about a new outbreak outside of China, particularly in South Korea. Traders also evaluate the prospects for lowering rates and other monetary changes that leading regulators can make. First of all, the focus is on the People's Bank of China, the Bank of Japan and the ECB.

EUR/USD

Today, during the Asian session, the EUR/USD pair is growing moderately, developing a correctional impulse formed at the end of the last trading week. The “bullish” dynamics of the instrument is facilitated by technical factors since the European currency has been oversold for a very long time. The instrument is supported by positive macroeconomic statistics from Germany, which slightly diluted the statistical negativity from the EU. Thus, the IFO business optimism index for February rose from 96.0 to 96.1 points against the forecast of a decrease to 95.3 points. The IFO economic expectations index for the same period rose from 92.9 to 93.4 points, which also was better than analysts' forecasts of 92.9 points. The indicator for assessing the current situation for February fell from 99.2 to 98.9, which, however, again turned out to be better than expectations at 98.6 points. During the day, investors expect the publication of updated statistics on German 209 Q4 GDP.

GBP/USD

Today, during the Asian session, the GBP/USD pair is slightly strengthening, being corrected after an uncertain yesterday’s decline. Investors expect new drivers to appear on the market since there was a lack of interesting publications at the beginning of the week, and the risks of a slowdown in the global economy amid the development of the coronavirus epidemic are gradually decreasing. On Tuesday, a block of macroeconomic statistics from the US on the dynamics of housing prices for December will be released. In addition, traders expect the publication of the level of consumer confidence and the speech of the representative of FOMC Richard Clarida. The UK will release CBI's retail report. For February, the sales volume is expected to grow from 0% MoM to +4% MoM.

AUD/USD

Today, during the Asian session, the AUD/USD pair is growing, continuing to develop the “bullish” momentum formed at the end of the last trading week. Monday's trading also ended with moderate growth of the instrument, however, due to the negative gap at the opening, the Australian dollar was not able to renew its local highs. Now, the instrument has added about 0.20%, testing the level of 0.6615 for a breakout. In addition to a number of technical factors, the price is supported by some improvement in the situation with coronavirus. Despite the increasing incidence of infection outside of China, official statistics from the PRC indicate that the peak of the epidemic has been overcome. In this regard, the Chinese authorities issued an appeal calling for the restoration of economic activity in areas with low risk of infection.

USD/JPY

Today, during the Asian session, the USD/JPY pair is growing slightly, consolidating near 111.00, after an active decline for two consecutive trading sessions. Now, the dollar has added about 0.07% and mainly due to the technical factors. Monday’s US macroeconomic statistics were ambiguous. Thus, the index of national activity of the Federal Reserve Bank of Chicago in January rose slightly from –0.51 to –0.25 points against the forecast of a decrease to –0.92 points. At the same time, the index of business activity in the industrial sector of the Dallas Federal Reserve in February grew only from –0.2 to 1.2 points, which was significantly worse than market expectations of 11.8 points.

XAU/USD

Today, during the Asian session, gold prices are slightly falling, being corrected after yesterday’s “bullish” surge, thanks to which the instrument renewed highs of January 2013. The appearance of correctional dynamics is due to the Chinese authorities’ calls to gradually restore economic activity in the country against the background of a noticeable stabilization of the situation with new coronavirus diseases. At the same time, the market is concerned about new outbreaks of infections outside of China, particularly in South Korea, Italy, and Iran.

EUR/USD

EUR shows negative dynamics against USD during today's Asian session, retreating from local highs since February 12, updated the day before. EUR is noticeably pressured by the weakening of the European economy amid continuing risks of the spread of the coronavirus epidemic. An outbreak in Italy threatens to exacerbate negative economic results in the country, reduce tourist popularity and push the economy towards a technical recession. A possible recession threatens the largest economy in Europe as well. At the same time, macroeconomic statistics from Germany published on Tuesday turned out to be neutral. According to updated data, German GDP for Q4 2019 increased by 0% QoQ and 0.4% YoY. Excluding seasonal adjustments, the German economy added 0.3% YoY.

GBP/USD

GBP is falling against USD during today's Asian session, again correcting after the growth the day before, which led to the renewal of local highs of February 19. The instrument loses about 0.10%, testing the level of 1.2980 for a breakdown. The growth of GBP on Tuesday was facilitated by the correctional sentiment against USD, while there are still not many fundamental reasons for the recovery of the pound. CBI Distributive Trades Survey published yesterday indicated an increase in sales volumes in February of only 1.0% MoM, while investors had expected an increase of 4% MoM. BRC Shop Price Index (it was released during today's Asian session) accelerated its decline from –0.3% YoY to –0.6% YoY.

AUD/USD

AUD shows a decline against USD during today's Asian session, returning to record lows, updated earlier this week. Pressure on the instrument is exerted by negative macroeconomic publications from Australia. Construction Work Done in Q4 2019 sharply decreased by 3% QoQ after a slight increase of 0.4% QoQ in the previous quarter. Analysts had expected negative dynamics, but expected a decrease of 1.0% QoQ. Negativity from Australia contrasts markedly with a number of optimistic US publications coming out on Tuesday. According to December results, the US Housing Price Index increased by 0.6% MoM after rising by 0.3% MoM in the previous month. S&P/Case-Shiller Home Price Indices accelerated over the same period from 2.5% YoY to 2.9% YoY, ahead of its forecasts (2.8% YoY).

USD/JPY

USD significantly strengthens against JPY during today's Asian session, correcting after the collapse of quotations for three consecutive trading sessions. The surge in demand for JPY is associated with an aggravation of the situation around the spread of coronavirus after official statistics indicated an increase in the incidence outside of China. The current positive dynamics of the instrument is due to technical factors, as well as to the publication of good data from the USA on the dynamics of Housing Prices, which are likely to support the general increase in inflation in the country. Japanese investors are focused on statistics from Japan, which will appear this Friday. The data on the labor market, retail sales and industrial production dynamics, as well as the pace of housing construction started in early 2020, are expected to be published.

XAU/USD

Gold prices show growth during today's Asian session, correcting after a sharp decline in quotations yesterday. The instrument is testing the level of 1645.00 for a breakout. Analysts attribute the appearance of negative trading dynamics on Tuesday to the fixation of long profits after updating seven-year highs. At the same time, investors are still frightened by statistics on the spread of the incidence of coronavirus outside of China, which supports gold quotes. Additional support for the instrument is provided by talks about the possible introduction by the leading regulators of changes in monetary policy in order to mitigate the negative consequences of a slowdown in the global economy. A number of analysts believe that the Fed may return to the idea of cutting rates already at the March meeting.

EUR/USD

Today, during the Asian session, the EUR/USD pair is steadily strengthening, renewing local highs since February 12. The growing risks of the further spread of coronavirus outside of China contribute to a noticeable increase in volatility, which supports EUR. At the same time, investors are worried about EU statistics, which indicates a slowdown in economic growth. Moreover, traders are increasingly talking about a possible recession in the German or Italian economies. On Thursday, the market is focused on a block of statistics on EU business sentiment for February. With the opening of the American session, analysts are waiting for the publication of data on the dynamics of US Durable Goods Orders, as well as updated data on Q4 2019 US GDP.

GBP/USD

Today, during the Asian session, the GBP/USD pair is growing slightly, being corrected after yesterday’s decline, which has thrown off GBP from local highs of February 19. GBP is under pressure of the expectations that the Bank of England may decide to lower the interest rate closer to the summer. Such a decision can be made to support the national economy due to the negative effects of coronavirus and uncertainty regarding trade negotiations between the UK and the EU. In turn, the instrument is supported by optimistic forecasts regarding the new budget, which is due to be submitted on March 11 by Finance Minister Rishi Sunak. The market expects a significant increase in budget spending, which should contribute to the restoration of the British economy.

NZD/USD

Today, during the Asian session, the NZD/USD pair shows flat dynamics, trading near local lows since October 17. Now the instrument has added insignificant 0.02% and is preparing to retest the level of 0.6300 for a breakout. NZD maintains multidirectional dynamics amid the publication of ambiguous macroeconomic statistics from New Zealand. Thus, ANZ Business Confidence for January fell from –13.2 to –19.4 points with a forecast of –7.9 points. NBNZ Own Activity for the same period decreased from +17.2 to +12% with an optimistic forecast of +24.7%. Q4 2019 private capital expenditures fell by 2.8% QoQ after a weakening of 0.4% QoQ in the previous period. Analysts had expected an increase of +0.4% QoQ. Investors were also disappointed with data on the dynamics of exports from New Zealand. At the end of January, the indicator slowed down from +$5.5 billion to +$4.73 billion, which was worse than market expectations and helped to reduce the trade surplus.

USD/JPY

Today, during the Asian session, the USD/JPY pair is falling, returning to a downtrend in the short term after an attempt at yesterday’s corrective growth. USD and JPY are fighting for the title of the safest currency amid a notable increase in risks due to the spread of coronavirus and a slowdown in the global economy. Yesterday, USD was supported by positive data from the United States. So, New Home Sales for January grew by 7.9% MoM after rising 2.3% MoM last month. Analysts had expected an increase in dynamics to +3.5% MoM. A large block of key statistics from Japan will be released on Friday. Investors are interested in data on the dynamics of retail sales, the labor market, and industrial production for January.

XAU/USD

Today, during the Asian session, gold prices show a positive trend, continuing the development of the “bullish” impulse formed yesterday. Demand for the instrument is again noticeably recovering amid growing risks of the spread of coronavirus. Numerous outbreaks of disease outside of China have scared investors who are looking for rescue in shelter assets. Also, amid the spread of the epidemic, the market actively talked about possible stimulation measures that the leading Central Banks of the world will take if necessary. In particular, the Fed and ECB are expected to reduce rates.

EUR/USD

EUR shows a slight decrease against USD during today's Asian session, correcting after a sharp yesterday's increase in the instrument which led to the renewal of local highs of February 6. The reason for the strengthening of the "bullish" sentiment on Thursday was the weak macroeconomic statistics from the US, which only strengthened market concerns about a possible interest rate cut by the Fed. In turn, European data came close to their forecasts, although they did not radiate much optimism either. One way or another, published statistics confirmed that the US economy grew by 2.1% YoY in Q4 2019. At the same time, GDP Price Index for the same period slowed down from 1.5% to 1.3%, which turned out to be worse than market expectations of 1.4%. Personal Consumption Expenditures Prices also weakened from 1.6% QoQ to 1.3% QoQ with a neutral outlook. Today, investors are focused on German data on Unemployment Rate and Consumer Inflation for February. The US will publish statistics on Personal Income and Spending for January.

GBP/USD

GBP is trading near zero against USD during today's Asian session, trading near the local lows of February 20. Pressure on GBP intensified amid growing concerns about Britain’s ability to negotiate a trade deal with the EU. The day before, UK officials reiterated that they were not ready to make concessions to the detriment of the country's sovereignty for the sake of concluding a deal with the EU. In addition, investors are somewhat disappointed with the Treasury’s reaction to the plans of the new UK finance minister, Rishi Sunak, to sharply increase government spending and reduce taxes. Apparently, Sunak will not be able to implement the initial plan, which may push the Bank of England to new measures to stimulate the national economy.

AUD/USD

AUD declines against USD during today's Asian session, updating record lows of March 2009. The instrument loses about 0.63%, testing the level of 0.6520 for a breakdown. Investors are again selling AUD amid growing risks of the further spread of coronavirus outside of China, which is increasingly threatening global financial stability and pushing regulators to new stimulation measures. Uncertain macroeconomic statistics from the USA published the day before contributed to the appearance of a moderate growth of the pair, of which there is currently no trace. Friday's data from Australia so far remain without attention. Meanwhile, Private Sector Credit in January accelerated from 0.2% MoM to 0.3% MoM, which turned out to be better than market expectations. In annual terms, the indicator grew by 2.5% YoY after an increase of 2.4% YoY in the previous month.

USD/JPY

USD is actively falling against JPY during today's Asian session. The instrument loses about 0.58%, testing the level of 109.00 for a breakdown. JPY again seized the initiative for some period and now it attracts investors as a safe asset. In turn, the macroeconomic statistics from Japan published today leaves much to be desired. Tokyo Core CPI slowed down in February from 0.7% YoY to 0.5% YoY, which turned out to be worse than market expectations of 0.6% YoY. Unemployment Rate in January rose sharply from 2.2% to 2.4% with a neutral forecast. Retail Sales in January rose by 0.6% MoM after rising by 0.2% MoM in the previous month. Analysts had expected the increase of 2.4% MoM. Industrial Production Rates in January continued to decline by 2.5% YoY after a decrease of 3.1% YoY in December. Analysts predicted a more significant decrease of 9.5% YoY. In monthly terms, production slowed down from 1.2% MoM to 0.8% MoM with a forecast of growth of 0.2% MoM.

XAU/USD

Gold prices show an uncertain downtrend during today's Asian session, correcting after rising for two consecutive sessions. Quotations are still supported by increased risks of the further spread of coronavirus outside of China. In addition, markets are concerned about a possible reduction in interest rates by leading regulators. Macroeconomic statistics from the USA published the day before did not add optimism to USD; however, low demand for risk continues to support it as well.

EUR/USD

EUR has shown ambiguous growth against USD during today's Asian session, updating monthly highs at the opening. The growth of the instrument was slightly corrected and EUR retreated from its highs to 1.1050, maintaining the general "bullish" sentiment. Investors are still focused on macroeconomic statistics from Germany, which appeared at the end of last week. Investors were optimistic about the decrease in Unemployment Change in Germany in February by 10K after a decrease of 4K in the previous month. Experts expected the growth by 3K. At the same time, the Unemployment Rate in February remained at the same level of 5%. Consumer inflation data also supported EUR. German Consumer Price Index in February showed an increase of 0.4% MoM and 1.7% YoY, which was slightly better than market expectations of 0.3% MoM and 1.7% YoY. Harmonized Price Index for the same period accelerated from 1.6% YoY to 1.7% YoY, exceeding forecasts.

GBP/USD

GBP shows corrective growth against USD during today's Asian session, retreating from the lows of October 2019, updated at the end of trading last week. The instrument is testing the level of 1.2820 for a breakout. The development of corrective sentiment, in addition to the technical factors of short profit taking, is facilitated by the publication of contradictory macroeconomic statistics from the US last Friday. In particular, investors were disappointed by the weak dynamics of Personal Spending of US citizens. In January, the growth in spending dynamics slowed from 0.4% MoM to 0.2% MoM, which turned out to be worse than market expectations of 0.3% MoM. At the same time, the Chicago PMI in February increased from 42.9 to 49 points against the forecast of growth to 45.9 points. Michigan Consumer Sentiment Index for the same period slightly strengthened from 100.9 to 101 points. During the day, investors expect the publication of macroeconomic statistics on business activity in the manufacturing sector of the UK and the USA.

AUD/USD

AUD has shown a sharp increase during today's Asian session, quickly retreating from record lows updated last Friday. Macroeconomic statistics from Australia provides moderate support for AUD on Monday, while USD remains vulnerable after hints of a possible reduction in interest rates by the Fed. Commonwealth Bank’s Manufacturing PMI rose from 49.6 to 50.2 points in February against a forecast of growth of only 49.8 points. At the same time, AiG Manufacturing PMI fell in February from 45.4 to 44.3 points. The inflation data from TD Securities also turned out to be negative. In February, prices fell by 0.1% MoM after rising by 0.3% MoM in January. Pressure on the instrument is provided by weak data from China, which continue to testify to the negative consequences of the spread of coronavirus in China and beyond. Caixin Manufacturing PMI in February fell sharply from 51.1 to 40.3 points, which was worse than market expectations of 45.7 points.

USD/JPY

USD is strengthening against JPY during today's Asian session, correcting after a sharp decline at the end of last trading week. The growth of USD is largely technical in nature, while the market still cannot decide on the safest assets amid the growing risks of the spread of coronavirus. Published macroeconomic statistics from the US and Japan last Friday turned out to be mixed, but Japanese data had a slightly greater effect. The statistics of the new week so far remain in the background. Japan's Manufacturing PMI from Jibun Bank in February rose from 47.6 to 47.8 points, which turned out to be better than neutral market forecasts. Capital Spending in Q4 2019 decreased by 3.5% QoQ after an increase of 7.1% QoQ in the previous period. Analysts had expected a positive trend to remain at 1.6% QoQ.

XAU/USD

Gold prices are recovering during today's Asian session, correcting after a sharp decline at the end of last week, when traders fixed long profits. Meanwhile, support for the instrument is still provided by the situation with the spread of coronavirus outside of China. Demand for safe assets is also supported by the expectation of new stimulus measures from leading financial regulators. Amid a sharp decline in the US stock market, US Fed Chairman Jerome Powell issued a statement calling the coronavirus a serious dynamic risk for the US economy, not excluding new support measures through interest rate cuts.

EUR/USD

Today, during the Asian session, the EUR/USD pair is trading in an upward direction, continuing the development of the “bullish” rally from February 21. Now EUR is adding about 0.20% and is testing the level of 1.1150 for a breakout. It is supported by expectations of easing monetary policy by the US Federal Reserve. The risks of a decrease in the rate by the regulator significantly increased after last Friday, the head of the regulator Jerome Powell noted that he was ready to act to neutralize the negative effect of the coronavirus epidemic. Macroeconomic statistics released on Monday were ambiguous again. EUR was supported by Manufacturing PMI in Europe. So, in February, the German Markit PMI rose from 47.8 to 48.0 points, which was better than analysts' neutral forecasts. EU PMI rose from 49.1 to 49.2 points, which also exceeded experts' expectations.

GBP/USD

Today, during the Asian session, the GBP/USD pair is growing within the correction, departing from local lows renewed at the end of the last trading week. The instrument is under pressure by the start of trade negotiations between the UK and the EU, which may be complicated, given the position of London on this issue. The parties need to agree on the access of the UK to a single market, as well as resolve the issue with the Irish border. In some cases, the EU insists on compliance with European laws, which Boris Johnson categorically rejects. Monday’s Macroeconomic UK statistics did not significantly support GBP. Thus, Manufacturing PMI for February fell from 51.9 to 51.7 points against the forecast of a decrease to 51.8 points.

AUD/USD

Today, during the Asian session, the AUD/USD pair is growing uncertainly, continuing to develop the correction impulse formed yesterday. The dynamics is developing against the background of the publication of the minutes of the RBA meeting, which indicates a decrease in the interest rate from 0.75% to a new record low of 0.50%. Although market forecasts presupposed that the rate would not be changed during this meeting, investors were optimistic about the decision of the Australian regulator and only strengthened the belief that the Fed could also decide to mitigate monetary policy. Australia's macroeconomic statistics released on Tuesday was ambiguous. Traders were disappointed by the negative dynamics of building permits (–15.3% MoM compared to the previous +3.9% MoM) but supported the data on the dynamics of new home sales in January from HIA: +5.7% MoM +2% MoM in December.

USD/JPY

Today, during the Asian session, the USD/JPY pair is declining and is currently compensating for yesterday's growth of the American currency. The “bearish” dynamics develops against the expectations of easing of the US Federal Reserve monetary policy due to the coronavirus epidemic. Goldman Sachs analysts believe that the regulator may decide to lower the rate at the meeting on March 18, and during the year will resort to another decrease of 0.50%. Monday’s US macroeconomic statistics also put pressure on the instrument. So, the Markit for February showed a slight decrease from 50.8 to 50.7 points. ISM Manufacturing PMI fell from 50.9 to 50.1 points, which was significantly worse than market forecasts for a decrease to 50.5 points. The production index of gradual acceleration of inflation from ISM in February fell from 53.3 to 45.9 points with a forecast of 51.0 points.

XAU/USD

Today, during the Asian session, the gold prices are rising, recovering from a sharp decline last Friday due to a sharp closing pf the positions by investors. Now, the price is supported by the spread of coronavirus. Investors are preparing for a possible easing of monetary policy by the world's leading central banks. Today, the RBA unexpectedly lowered its rate, which only strengthened the market's belief that the Fed would soon decide to decrease it, too.