Forex News Analysis by LiteForex

EUR/USD

EUR is correcting against USD during today's Asian session, falling after an 8-day rally, which brought EUR to new highs since the beginning of the year. The steady increase in EUR over the past two weeks was caused by the closure of part of the carry trade positions against the backdrop of increasing risks of the spread of the coronavirus epidemic. Now, under the threat of lower interest rates by global financial regulators, the focus of attention of European investors is changing significantly. The finance ministers and bank managers of the largest economies in the world (G7) agreed on readiness for the most decisive action to protect the global economy. After a telephone conversation, having held an emergency meeting, the Fed lowered the interest rate immediately by 0.50%, reducing speculation regarding the March meeting of the regulator to nothing. However, some analysts believe that at the scheduled meeting in March, the regulator can go for additional stimulation measures.

GBP/USD

GBP is trading near zero against USD during today's Asian session, awaiting the emergence of new drivers. GBP managed to recover slightly the day before, having received support from the sudden reduction in the interest rate by the Fed. However, the general negative sentiment regarding the situation with the coronavirus epidemic and the uncertain prospects of trade negotiations between the UK and the EU kept the currency near the lows of October 2019. In addition, after the Fed's action, investors expect similar actions from the Bank of England. Analysts estimate that the British regulator may reduce the interest rate by 0.25% at a meeting on March 26, and by the end of the calendar year may take another similar reduction.

NZD/USD

NZD shows ambiguous trading dynamics against USD during today's Asian session, trading near zero. The "bullish" impulse that has formed in the market after an unexpected decrease in the interest rate by the Fed is rapidly weakening, and investors expect similar actions from other regulators. The RBNZ will hold a meeting on the rate on March 25, and so far the risks of easing monetary policy are very high. New Zealand macroeconomic statistics released today do not strengthen the instrument. Building Permits in January decreased by 2% MoM after growth by 9.8% MoM in the previous month. Analysts had expected decline of 0.9% MoM. ANZ Commodity Price Index collapsed by 2.1% MoM in February after a decline of 0.9% MoM in January. Analysts had expected decrease of 0.8% MoM.

USD/JPY

USD is strengthening against JPY during today's Asian session, recovering from a sharp fall of the instrument yesterday, which took place against the background of a sudden decrease in the interest rate by the Fed immediately by 0.50%. USD is adding about 0.10%, testing the levels of 107.40-107.50 for a breakout. The reason for the emergence of positive dynamics was the technical factors of correction of short profit, as investors are still worried about uncertain prospects and show considerable caution. In addition, the market does not receive the most confident macroeconomic statistics. Jibun Bank Services PMI in Japan fell from 51 points to 47 points in February, which, however, was 0.3 points better than market expectations. Caixin Services PMI fell from 51.8 to 26.5 points over the same period.

XAU/USD

Gold prices rose sharply at yesterday's trading, completely leveling the negative dynamics of the instrument at the end of last trading week. A slight increase can be seen during today's Asian session; however, the "bullish" activity is noticeably reduced. The reason for the surge in purchasing activity for the instrument was a sudden decrease in the interest rate by the Fed after a conference of G7 finance ministers. The US regulator set a precedent, and now investors are even more nervous, expecting similar actions from other banks. The focus of investors today is a block of macroeconomic statistics from the US on business activity from ISM and Markit. In addition, closer to the end of the afternoon session, the Fed will publish its updated economic review, the so-called Beige Book.

EUR/USD

Today, during the Asian session, the EUR/USD pair is growing slightly, being corrected after yesterday’s active decline, when the euro moved away from local highs of the beginning of the year and stopped the protracted “bullish” rally. The weakening of the instrument was facilitated by a decrease in the Fed interest rate at an emergency meeting of the regulator by 50 basis points to 1.25%. Now, investors expect the European regulator to lower the deposit rate next week, and may also expand the quantitative incentive program. Macroeconomic statistics from Europe published on Wednesday were ambiguous. Thus, German Composite Markit PMI for February fell from 51.1 to 50.7 points with a neutral forecast. EU Composite Markit PMI adjusted from 52.8 to 52.6 points, which also was worse than market expectations.

GBP/USD

Today, during the Asian session, the GBP/USD pair is trading flat, consolidating near local highs since February 28. Since Tuesday, the pound has been developing a slight correction, which is supported by a sudden decrease in the interest rate of the US Federal Reserve and expectations of the first results of trade negotiations between the UK and the EU. Also, on March 11, traders wait for the publication of the UK budget from the new Minister of Finance, Rishi Sunak, which is expected to significantly increase budget spending and bring several changes to the country's fiscal policy. On Thursday, traders are focused on the publication of data on the dynamics of approved mortgages in the UK in January from the BBA. At the end of the afternoon session, Mark Carney, the head of the Bank of England, will speak.

AUD/USD

Today, during the Asian session, the AUD/USD pair shows flat dynamics, consolidating near the level of 0.6620 and maintaining the “bullish” momentum formed at the beginning of the week. Support for the Australian currency is provided by positive national macroeconomic statistics, as well as a decrease in the interest rate of the US Federal Reserve by 50 basis points. On Wednesday, investors with a fair amount of optimism met data on the dynamics of Australia's GDP. Q4 2019 GDP grew by 0.5% QoQ, which was 0.2% better than market expectations. In annual terms, economic growth accelerated from +1.7% YoY to +2.2% YoY, exceeding market forecasts of +1.9% YoY. However, Thursday’s statistics leaves much to be desired. Export volumes from Australia in January decreased by 3% after an increase of 1% over the previous period. Imports in January fell by 3%, which ultimately led to a reduction in the trade surplus from 5376 million to 5210 million Australian dollars.

USD/JPY

Today, during the Asian session, the USD/JPY pair is falling again, retreating after yesterday’s correctional growth, which was supported by the publication of moderately optimistic macroeconomic statistics from the USA. Now, the dollar has lost about 0.16%, testing the level of 107.30 for a breakdown. Yesterday’s data indicated a sharp increase in the February US ISM Non-Manufacturing PMI from 55.5 to 57.3 points, which was significantly better than market expectations of 54.9 points. ISM Non-Manufacturing Employment also rose significantly from 53.1 to 55.6 points with a forecast of 54.1 points. ISM Non-Manufacturing New Orders for the same period increased from 56.2 to 63.1 points against market expectations for growth of only 56.3 points.

XAU/USD

Today, during the Asian session, gold prices show flat dynamics, consolidating after a sharp increase on Tuesday, when the US Federal Reserve unexpectedly cut its interest rate by 50 basis points at once, recognizing a significant negative risk from the further spread of the coronavirus epidemic. Also, the American regulator was one of the first to decide on a significant easing of monetary policy, and now the market expects similar actions from almost all the world's leading central banks. Moreover, analysts believe that the Fed will take another reduction before the end of this year. On Thursday, investors are focused on a block of macroeconomic statistics from the United States on the dynamics of applications for unemployment benefits and production orders for January. The centerpiece of all macroeconomic publications is Friday when the US unveils February labor market data.

EUR/USD

EUR is consolidating together with USD during today's Asian session. The instrument is trading near 1.2330, slightly departing from the local highs of August 2019, updated the day before. EUR is supported by alarming market sentiment due to the further spread of the coronavirus epidemic and the measures taken by the world's leading financial regulators to maintain economic growth. On Tuesday, the Fed sharply cut interest rates by 0.50%, setting an example to all other regulators who are just thinking about support measures. EUR was also supported by macroeconomic data from the US, released yesterday. Nonfarm Productivity in Q4 2019 slowed down from +1.4% QoQ to +1.2% QoQ, which turned out to be worse than neutral forecasts of investors. Factory Orders in January fell by 0.5% MoM after an increase of 1.9% MoM in December. Analysts had expected negative trend to appear, but counted on only –0.1% MoM decline.

GBP/USD

GBP shows a slight increase against USD during today's Asian session, trading near local highs of February 26, updated the day before. Moderate support for GBP is provided by weakening expectations of lower interest rates by the Bank of England. The new head of the British regulator, Andrew Bailey, who is due to take office March 16, said the Bank of England should not rush to cut rates after the Fed. First of all, according to Bailey, it is necessary to assess the risks of the spread of the virus and its economic consequences. Additional support for the instrument is provided by weak positions in USD, which turned out to be vulnerable after an unexpected decrease in the interest rate of the Fed on Tuesday. In turn, the growth of GBP above 1.3000 is hindered by the uncertain situation around the trade negotiations between the UK and the EU. Boris Johnson remains adamant and he declares his readiness to leave the negotiations without an agreement if the EU does not reduce its requirements.

AUD/USD

AUD is falling against USD during today's Asian session, developing a weak correctional impulse formed yesterday. Pressure on the instrument is exerted by weak macroeconomic statistics from Australia, as well as the general negative market background associated with the spread of coronavirus and the efforts of world regulators to minimize damage to the global economy. AiG Performance of Services Index in February fell from 47.4 to 47.0 points, which turned out to be worse than market expectations. Retail Sales in January fell by 0.3% MoM after a decline of 0.7% MoM in the previous month. Analysts had expected zero dynamics. On Friday, investors focus on the publication of the February report on the US labor market.

USD/JPY

USD continues to develop negative dynamics against JPY, updating record lows. The instrument is trying to consolidate below 105.90, a local low of September 2019. Demand for JPY again began to recover in the market after a sudden decrease in the interest rate by the Fed on Tuesday, which gave rise to a new wave of concern in the market regarding the further spread of the coronavirus epidemic. JPY is also supported by Friday's macroeconomic data from Japan. Labor Cash Earnings in January increased by 1.5% YoY after a decrease of 0.2% YoY last month. Analysts expected growth by 1.3% YoY. Overall Household Spending in January remained negative, but the indicator increased slightly compared to the previous month: –3.9% YoY against –4.8% YoY.

XAU/USD

Gold prices show growth during today's Asian session, continuing the development of the "bullish" momentum formed on Tuesday. Yesterday, the quotes rose by more than 1%, as investors continued to avoid risky transactions amid the spread of the coronavirus epidemic outside of China. Investors were particularly worried about the outbreak in the United States, as a result of which the authorities in California were forced to declare a state of emergency, and the Fed unexpectedly lowered interest rates by 0.50% on Tuesday, trying to minimize the negative consequences for American business.

EUR/USD

Today, during the Asian session, the EUR/USD pair is actively falling, retreating from record highs, renewed yesterday. The weakening of EUR is facilitated by technical factors, as well as the slow recovery of US stock markets, which opened at the beginning of the week with a sharp decline. Now, the instrument has lost about 0.80%, testing the 1.1350 the level of for a breakdown. However, the price receives moderate support from yesterday’s German macroeconomic statistics. Thus, industrial production in January grew by 3% MoM after a decrease of 2.2% MoM last month. Analysts predicted the appearance of positive dynamics only at the level of +1.5% MoM. In annual terms, the decline in production slowed down from –5.3% YoY to –1.3% YoY, which also was noticeably better than the forecasts of –4.5% YoY. On Tuesday, investors expect the publication of updated data on EU Q4 2019 GDP.

GBP/USD

Today, during the Asian session, the GBP/USD pair again reverses downwards and retreats from local highs of early February, renewed on Monday. The appearance of a “bearish” dynamics is facilitated by corrective sentiment in favor of USD, which finally recovers after a sudden decrease in the Fed’s interest rate last week. Additional pressure on GBP has poor UK macroeconomic statistics. Thus, retail sales for February, according to data from the Confederation of British Industrialists, decreased by 0.4% YoY after zero dynamics last month. Real dynamics was half the market expectations. Tomorrow, a large block of macroeconomic statistics: data on the dynamics of GDP, industrial production and the balance of trade in goods for January will be released.

NZD/USD

Today, during the Asian session, the NZD/USD pair is moderately declining, consolidating after the ambiguous dynamics of the beginning of the week, which was characterized by the highest level of activity. The instrument decreases due to the increase in correctional sentiment in favor of USD, which was oversold after the US Federal Reserve cut its interest rate by 50 basis points last week. Tuesday’s ambiguous macroeconomic statistics have added pressure on the course. Q4 2019 sales in the industrial sector of New Zealand increased by 2.7% QoQ after a decrease of 0.3% QoQ in the previous period. However, the indicator was noticeably worse than market expectations of +4.3% QoQ.

USD/JPY

Today, during the Asian session, the USD/JPY pair is actively growing. Now, the dollar has added about 1.75%, testing the level of 104.20 for a breakout. Thanks to the active actions of the “bulls”, the instrument managed to compensate for the decline in the instrument at the beginning of the week and move away from record lows since September 2016. The development of upward dynamics contributes to the strengthening of USD throughout the spectrum of the market, which remains subject to panic. Macroeconomic statistics from Japan, released earlier this week, which previously had been neglected, also put pressure on JPY. The country reported a further slowdown in the economy. Q4 2019 GDP decreased by 1.8% QoQ after weakening by 1.6% QoQ in the third quarter. Over the year, the Japanese economy collapsed by 7.1% YoY after a decline of 6.3% YoY in the third quarter.

XAU/USD

Today, during the Asian session, gold prices are falling, continuing the development of the “bearish” impulse formed yesterday when the instrument retreated from its record highs since December 2012. The development of negative dynamics is facilitated by the strengthening of the position of USD, which is again in demand against the background of a complicating economic situation in the world. Markets reacted extremely violently to the collapse of oil prices, and they also expect a further easing of monetary policy by the leading central banks in response to the spread of the coronavirus epidemic.

EUR/USD

EUR is growing against USD during today's Asian session, correcting after sharp fall the day before. Moderate support for EUR is provided by data from the euro area released on Tuesday. Employment Change in Q4 2019 increased by 1.1% YoY, maintaining the same pace despite forecasts of a slowdown to 1.0% YoY. In quarterly terms, employment accelerated from 0.2% QoQ to 0.3% QoQ, which met market expectations. Eurozone GDP in Q4 2019 increased by 0.1% QoQ and 1.0% YoY, slightly ahead of its preliminary estimates (0.1% QoQ and 0.9% YoY). The focus of European investors remains on the ECB meeting on interest rates on Thursday. It is expected that the European regulator can follow the example of the Fed and will consider the possibility of easing monetary policy in the region. However, the ECB has not so many opportunities in this regard. The interest rate remains at zero level, and the deposit rate remains at –0.5% per annum.

GBP/USD

GBP is showing moderate growth against USD during today's Asian session, recovering after sharp fall the day before. Amid some panic in the market due to collapsed oil prices, USD received a powerful impetus for growth on Tuesday and rose significantly against almost all its major competitors. Today corrective sentiment reigns supreme, and investors expect new growth drivers. Traders are focused on macroeconomic statistics from the UK on the dynamics of Industrial Production and GDP growth in January. The US will publish statistics on Consumer Inflation. It is expected that amid the slowdown in global economic growth in February, Consumer Inflation in the US may decline from 2.5% YoY to 2.2% YoY.

AUD/USD

AUD is showing moderate growth against USD during today's Asian session, correcting after a collapse the day before. The instrument adds about 0.20% and tests the level of 0.6500–0.6510 for a breakout. Some support for AUD is provided by macroeconomic statistics from Australia. Home Loans in January grew by 3.1% MoM after growth of 3.5% MoM in December. Analysts had expected a sharp decline in the growth rate of the indicator to 0.5% MoM. Investment Lending for Homes in January also increased from 2.8% MoM to 3.6% MoM. Only Westpac Consumer Confidence Index was disappointing: in March, the indicator decreased by 3.8% MoM after a steady growth of 2.3% MoM in February. Analysts had expected negative trend to appear, but counted on only 0.4% MoM decline.

USD/JPY

USD is falling against JPY during today's Asian session, retreating from local highs, updated the day before. On Tuesday, USD showed strong growth across the entire spectrum of the market, supported by rising fears amid collapse in oil prices. Meanwhile, USD is under pressure due to the possibility of a further reduction in the interest rate by the Fed. Many analysts believe that the US regulator may go for an additional reduction of 0.50% by the end of March, which will contribute to a noticeable outflow of USD buyers. During the day, investors expect the publication of statistics from the US on consumer inflation. Forecasts suggest a slight decline, but USD may partly ignore weak data, as rates and the coronavirus epidemic still dominate the minds of investors.

XAU/USD

Gold prices are recovering during today's Asian session, correcting after a sharp decline at the beginning of the week, when quotes retreated from their record highs since December 2012. The instrument adds about 0.77% and is actively testing the level of 1660.00 for a breakout. Hopes for new measures to support the global economy have a positive effect on the dynamics of USD. At the same time, investors remain wary of the uncertain situation with the coronavirus epidemic and the recent collapse in oil prices caused by the price war between Saudi Arabia and Russia. Finally, gold is supported by expectations of the next reduction in the interest rate by the Fed at the meeting on March 18.

EUR/USD

Today, during the Asian trading session, the EUR/USD pair is growing moderately, being correcting upwards after a two-day decline. USD is under pressure despite the publication of positive US macroeconomic statistics on Monday. Thus, the Consumer Price Index for February grew by 0.1% MoM and 2.3% YoY, which was slightly better than market expectations of 0.0% MoM and +2.2% YoY. Core CPI s. a. for the same period increased from 266.48 to 267.07 points. On Thursday, European investors wait for the EU statistics on industrial production for January, as well as the ECB's interest rate decision with the following press conference. It is expected that the European regulator will lower the rate, which may have negative consequences for the banking sector of the region, which in this case will need additional support.

GBP/USD

Today, during the Asian trading session, the GBP/USD pair shows ambiguous dynamics and is leaning towards a slight correction after an active decline for two consecutive sessions. The instrument is under significant pressure of the Bank of England’s unexpected decision on lowering interest rates by 50 basis points to 0.25% in order to support weakening markets amid the spread of the coronavirus epidemic and a widespread economic slowdown. The decision to soften monetary policy was adopted unanimously by all nine board members. Additionally, the pound is negatively affected by poor macroeconomic statistics from the UK. Thus, Industrial Production for January decreased by 2.9% YoY after a decrease of 1.8% YoY last month. Analysts had expected a decrease of 2.6% YoY. GDP for January showed zero dynamics, while experts expected a slight increase of +0.2% MoM. Nevertheless, despite such powerful negative factors, the pound remains relatively stable. It is partly due to the traders’ hopes for a new UK budget presented in parliament on Wednesday.

AUD/USD

Today, during the Asian trading session, the AUD/USD pair is falling, continuing the development of the “bearish” momentum. Now, the Australian dollar has lost about 0.35% and is testing the 0.6450 the level of for a breakdown. The instrument is under pressure by uncertain macroeconomic statistics from Australia, published on Wednesday. In particular, the Westpac Consumer Confidence Index fell by 3.8% MoM in March after rising 2.3% MoM in the previous month. Experts expected a decrease of only 0.4% MoM. The US published optimistic data on the dynamics of consumer inflation, although traders were also scared by the figures on the state of the budget for February. According to a published report, its deficit reached $235 billion, while last month it was only $33 billion.

USD/JPY

Today, during the Asian trading session, the USD/JPY pair shows ambiguous trading dynamics, while maintaining a negative mood. Despite yesterday's publication of positive US macroeconomic statistics on consumer inflation, the dollar is currently giving way to the yen in the race for the “safest” currency. Meanwhile, macroeconomic statistics from Japan published on Thursday are poor. Thus, the February domestic price index for corporate goods slowed down from +1.5% YoY to +0.8% YoY, which was worse than market expectations +1.0% YoY. The producer price index of goods for the same period fell by 0.4% MoM after rising by 0.1% MoM last month. The indicator also was worse than its forecast, which suggested a decrease of 0.3% MoM. Additional pressure on the dollar against the yen is having a rapid reduction in the difference in interest rates between the Fed and the Bank of Japan. Considering that the American regulator may decide on another rate cut before the end of March, this negative factor will only strengthen.

XAU/USD

Today, during the Asian trading session, gold prices show ambiguous dynamics, trying to be corrected after an active decline in the instrument for three consecutive sessions. It is facilitated by a slight weakening of the US currency, which occurs despite the publication of US optimistic macroeconomic statistics on consumer inflation. Demand for gold also increased after yesterday’s emergency meeting of the Bank of England, during which the regulator decided to reduce the interest rate by 50 basis points. On Thursday, traders are focused on the ECB meeting, which may also end with a softening of monetary policy.

EUR/USD

EUR is showing corrective growth against USD during today's Asian session, recovering from an active decline for three consecutive sessions, which allowed the instrument to retreat from the January 2019 highs. The growth of EUR is facilitated by the weakening of USD in the market after the speech of Donald Trump, which frankly disappointed investors. Trump announced a ban on entering the US from 26 eurozone countries for a month, and also allowed the introduction of additional tax and credit exemptions for small and medium-sized enterprises. However, investors have not heard anything about new measures to combat coronavirus, in particular regarding the development of a vaccine. Meanwhile, the ECB held a meeting on monetary policy on Thursday, at which the president of the regulator, Christine Lagarde, announced new measures to stimulate the economy. The Bank kept rates at the previous minimum levels and noted that it would increase the volume of additional net asset purchases by EUR 120B. In addition, Lagarde called on EU leaders to take the most decisive actions aimed at stabilizing the economic situation in the region, pointing out the high risks of delay.

GBP/USD

GBP is developing an active downtrend against USD in trading this week, updating the local lows of October 2019 closer to the end of the weekly session. GBP remains under pressure amid growing panic and market uncertainty. Earlier in the week the Bank of England quite unexpectedly decided to reduce the interest rate immediately by 0.50%, bringing it to the level of 0.25%. The regulator explained this decision by the desire to help a rapidly slowing economy amid the spread of the coronavirus epidemic and the introduction of new bans from various states. Additional pressure on the instrument was provided by macroeconomic statistics from the UK on the dynamics of industrial production and the growth rate of GDP in January. Investors are focused on the publication of the Bank of England Meeting Minutes, from which the markets will be able to learn about the updated forecasts of the regulator in the near future.

NZD/USD

NZD shows a slight increase during today's Asian session, correcting after an active decline the day before. The instrument adds about 25 points and is actively testing the level of 0.6150 for a breakout. The development of the uptrend in the pair proceeds against the background of a slight decrease in USD, which is undergoing sales after the speech of US President Donald Trump the day before. Investors were disappointed with Trump's statements, as they expected to hear about concrete steps to develop a vaccine and curb the spread of the disease within the country. Additional support for NZD on Friday is provided by published data on Business NZ PMI. In February, the indicator rose sharply from 49.6 to 53.2 points, significantly exceeding forecasts of growth to 50.3 points. At the same time, the Food Price Index for the same period slowed down from 2.1% MoM to 0.0% MoM, being worse than forecasts of 0.2% MoM.

USD/JPY

USD is strengthening against JPY during today's Asian session, continuing to develop an unsteady "bullish" momentum that formed the day before. The growth of the instrument is facilitated by technical factors, while USD remains vulnerable after Donald Trump's controversial speech the day before. In addition, markets were unsatisfied with the publication of statistics on industrial inflation in the US for February. Today’s Japanese statistics provides insignificant support for JPY. Tertiary Industry Index in January increased by 0.8% MoM after a decline of 0.3% MoM last month. Analysts had expected positive trend to emerge, but counted on 1.2% MoM growth.

XAU/USD

Gold prices show multidirectional dynamics during today's Asian session, consolidating after a sharp decline the day before, which was triggered by profit taking on the instrument and an increase in demand for USD as a safe haven currency. At the same time, investors were disappointed by Donald Trump's speech, in which he announced a ban on entry into the US from 26 European countries, but did not touch on the development of other measures to combat coronavirus. Meanwhile, disturbing news about the spread of the coronavirus epidemic provoked another panic sale on the stock market, which could push the leading financial regulators to new measures to support the economy.

EUR/USD

EUR declines against USD during today's Asian session, returning to a downtrend after the opening with the rising gap against the backdrop of an unexpected reduction in the interest rate by the Fed to zero. In an effort to help a weakening economy, the US regulator lowered its key rate range to 0.00–0.25%, and also announced that it would increase its balance sheet to USD 700B. In addition, at the end of last week, US President Donald Trump announced the introduction of a state of emergency in the US, which will allow the country to attract additional investments on the ground and increase funding for the program to combat the epidemic. The ECB also seeks to create additional support for the economy. Despite the fact that at its last meeting, the European regulator did not change the rate parameters, the EU intends to create a special fund in the amount of EUR 37B, and also guarantees support for small and medium-sized businesses through the issuance of loans in the amount of EUR 8B.

GBP/USD

GBP is again trading with a downtrend paired with USD, approaching the previous local lows, updated at the end of last week. GBP, like many other currencies, opened on Monday with a noticeable increase, which was caused by an unexpected decrease in the interest rate of the Fed immediately by 100 basis points. However, despite the unprecedented measures that the US government is taking to curb the negative effects of coronavirus, demand for USD remains very high, as investors fear a negative scenario. Today's macroeconomic statistics from the UK got lost amid news from the United States. However, Rightmove House Price Index in March rose by 1.0% MoM, accelerating after rising by 0.8% MoM. In annual terms, the indicator grew by 3.5% YoY after an increase of 2.9% YoY in the previous month. Traders are awaiting the publication of the February report on the UK labor market, which is due to appear on Tuesday.

NZD/USD

NZD is falling against USD during today's Asian session, returning to the lows of last Friday after the opening with the gap up due to a sharp interest rate cut by the US Federal Reserve. The American regulator did not wait for the scheduled meeting at the end of the month and announced the most decisive measures to support the national economy, trying to minimize the damage from the further spread of the coronavirus epidemic. Macroeconomic statistics released this morning have been mixed. Investors were disappointed with the Chinese data on retail sales and industrial production, but were optimistic about the statistics on the number of Visitor Arrivals in New Zealand in January, reflecting an increase in the indicator (it is obvious that in the coming months the tourist flow will noticeably decrease). Industrial production in China fell by 13.5% YoY in February, after rising by 6.9% YoY last month. Analysts had expected positive dynamics to remain at 1.5% YoY. Retail Sales went down by 20.5% YoY after rising by 8% YoY in January. Forecasts suggested an increase of 0.8% YoY.

USD/JPY

USD shows ambiguous dynamics against JPY during today's Asian session, trading near the opening level at 107.00. Investors take a lead from a sudden decision of the US Fed to lower interest rates to zero, which should help a weakening global economy amid the further spread of the coronavirus epidemic. Other leading regulators come forward with similar measures. Earlier, the Bank of Japan announced a new program of purchases of government bonds worth JPY 200B, and also announced the issuance of JPY 1.5T of short-term loans for small and medium-sized businesses. Moderate support for JPY at the beginning of the week is provided by macroeconomic statistics published in Japan. Machinery Orders in January grew by 2.9% MoM after a decrease of 12.5% MoM last month. Analysts had expected negative dynamics to remain at –1.6% MoM. In annual terms, the decline slowed from –3.5% YoY to –0.3% YoY, which also turned out to be better than forecast of –0.5% YoY.

XAU/USD

Gold prices are falling during today's Asian session, gradually returning to the levels of the end of last week, when the instrument recorded a strong decline and updated local lows of the end of December 2019. Gold, like many other assets paired with USD, showed a positive gap at the opening of trading of the new week, which was caused by extremely aggressive measures of support for the national economy by the US Fed. Without waiting for the scheduled meeting, the regulator announced a reduction in interest rates to zero, which, coupled with unprecedented support of USD 1.5T, should significantly help the national and global economy.

EUR/USD

Today, during the Asian session, the EUR/USD pair is trading in different directions, consolidating near the level of 1.1180. Investors are concerned about the rapid development of the situation with coronavirus in the world and are looking for salvation in shelter assets, which are becoming less and less. Yesterday, the main news came from the United States: the Fed announced a sudden rate cut to almost zero. However, a sharp decline in USD did not follow, it was able to quickly recover and move into the green zone. The single currency closed Monday trading with a slight decrease, which, among other things, was due to the publication of poor macroeconomic statistics on consumer inflation in Italy. Investors also focused on a sharp decline in February industrial production by 13.5% YoY in China. During the day, traders expect the publication of data on business sentiment in the EU and Germany from ZEW, as well as statistics on production volumes in the construction sector in January. Europe also plans to hold a meeting of the Council of Ministers of Finance and Economics, which will discuss additional measures to support the region's economy in the context of the further spread of the epidemic.

GBP/USD

Today, during the Asian session, the GBP/USD pair is trading in a downward direction, continuing the development of a “bearish” trend since March 9, which led to the renewing of local lows from October 2019. New measures to support the economy, which the Fed announced the day before, had virtually no effect on the active growth of USD across the entire spectrum of the market. This was especially noticeable in the dynamics of the pound against the dollar since the British currency in the current realities is far from the concept of a “shelter asset”. Also, after the Fed’s decision, investors expect the Bank of England to take additional measures to support the economy at its next meeting on March 26. The focus of investors on Tuesday is the publication of information on the UK labor market for January-February of this year.

AUD/USD

Today, during the Asian session, the AUD/USD pair is growing slightly, retreating from record lows of the end of 2008, renewed the day before. Now, the instrument has added insignificant 0.07% and is trying to consolidate above the levels of 0.6100–0.6110. The price is under pressure amid the coronavirus pandemic, which is forcing the world's leading central banks to resort to the most decisive measures to support the global economy. The weakening of the Australian currency on Monday was also due to the disappointing data from China. February industrial production decreased by 13.5% YoY after an increase by 6.9% YoY in January. Retail sales for the same period fell by 20.5% YoY after rising by 8% YoY at the beginning of the year. On Tuesday, slight support for the instrument is provided by data from Australia on the dynamics of housing prices. In the fourth quarter, prices rose by 3.9% QoQ and 2.5% YoY, which was noticeably better than the data for the previous period +2.4% QoQ and –3.7% YoY.

USD/JPY

Today, during the Asian session, the USD/JPY pair is growing, compensating for the decline the day before, when the yen still got a chance to strengthen after a sharp decrease in the Fed’s interest rate. The Bank of Japan, in turn, left rates at the previous lows, however, noted that it would increase the quantitative easing program and also develop a new corporate lending scheme that should support economic activity in the country. On Tuesday, JPY was slightly supported by macroeconomic statistics from Japan. Thus, industrial production in January increased by 1% MoM after an increase by 0.8% MoM over the past month. In annual terms, production slowed down its decline from –2.5% YoY to –2.3% YoY. The capacity utilization rate for January increased by 1.1% MoM after a decline by 0.4% MoM for December.

XAU/USD

Today, during the Asian session, gold prices remain under pressure and are testing for a downward breakdown of the level of 1500.00. The instrument continues to develop a confident “bearish” trend, which led to the renewing of record lows on Monday. Although at the beginning of the new week at Forex, the Fed announced a sudden decrease in the interest rate to almost lows, investors actively sold the precious metal, compensating for their losses in other assets. Meanwhile, US bond yields continued to decline steadily. Collapses were also recorded on stock and commodity platforms. Macroeconomic statistics published yesterday was poor. Investors were disappointed by the Chinese record decline in February industrial production by 13.5% YoY. The index of business activity in the manufacturing sector of the Federal Reserve Bank of New York in March fell from 12.9 to –21.5 points against the forecast of a decrease to only 4 points.

EUR/USD

EUR is growing against USD during today's Asian session, correcting after another active decline yesterday when EUR was under pressure from the depressing statistics on business activity from ZEW. The German ZEW Economic Sentiment collapsed from 8.7 points to –49.5 points in March, which turned out to be almost half the market’s expectations of –26.4 points. The German ZEW Economic Sentiment for the same period fell from –15.7 to –43.1 points with a forecast of –30 points. ZEW Economic Sentiment in the euro area in March fell from 10.4 to –49.5 points with a forecast of a decrease of only 35.4 points. Meanwhile, the coronavirus pandemic continues to rage in Europe, which is pushing states to take new measures to support the economy and tighten quarantine. Many European companies have announced that they will suspend their production for several weeks in an attempt to minimize their losses. On Wednesday, European investors are focused on the February statistics on consumer inflation in the euro area.

GBP/USD

GBP is correcting against USD during today's Asian session, retreating from half-year lows, updated the day before. The instrument adds about 0.45% and is trying to consolidate above 1.2100–1.2110. The main driver of the pair's movement remains the coronavirus epidemic, which stirs the markets. Investors continue to buy USD as a safe currency, only occasionally paying attention to more risky assets. The current growth of GBP can be attributed to the fixation of quick profits, while fundamentally the situation remains the same. Macroeconomic statistics from the UK published yesterday turned out to be mixed. Claimant Count Rate in February increased by 17.3K after a decrease of 0.2K in the previous period. Analysts had expected a more confident growth of 21.4K. Average Earning Including Bonus in January increased from 2.9% 3MoY to 3.1% 3MoY, which was 0.1% better than expected. At the same time, the Unemployment Rate in January rose from 3.8% to 3.9%.

NZD/USD

NZD today shows flat trading dynamics, consolidating after another decline yesterday, which led to the updating of record lows since May 2009. NZD noticeably lose to USD, which is popular with those trying to minimize their risks. The pursuit of liquidity does not interfere even with unprecedented measures to support the US economy. On Monday, the Fed sharply reduced its rates to the lowest levels, and also said that it had adjusted its program aimed at providing USD abroad with other leading regulators. The US Treasury Department announced that it intends to buy back USD 1 trillion in securities by US companies, while the business can expect a deferment in paying taxes. Yesterday's macroeconomic statistics from New Zealand put additional pressure on the instrument. Global Dairy Trade Price Index in February fell by 3.9% MoM after a decrease of 1.2% MoM in the previous month. The indicator was worse than the forecast of –2.7% MoM.

USD/JPY

USD is falling against JPY during today's Asian session, correcting after active growth yesterday, which proceeded against the backdrop of a market race for liquidity. At the same time, Japanese macroeconomic statistics released on Tuesday provided insignificant support to JPY. Industrial Production in January slightly increased from 0.8% MoM to 1.0% MoM. Capacity Utilization in the same period added 1.1% MoM after the decline by 0.4% MoM in December. At the same time, US data were disappointing. Retail sales fell in February by 0.5% MoM after rising by 0.6% MoM in January.

XAU/USD

Gold prices are consolidating during today's Asian session near the level of 1530.00, to which the instrument managed to rise due to corrective growth the day before. Investors drew attention to gold amid the ongoing rally of USD, as concerns about a further slowdown in the global economy remain. Additional support for the instrument was provided by weak US Retail Sales data, which reflected a natural weakening of economic activity at the beginning of the epidemic. On Wednesday, investors expect the appearance of statistics on the housing market in the US for February, but do not expect to receive any additional support for USD.