Forex News Analysis by LiteForex

EUR/USD

Today, during the Asian trading session, the EUR/USD pair is falling, continuing the development of a downward correctional impulse formed at the beginning of the week. USD strengthens, supported by rising concerns about the further spread of coronavirus. In turn, the published macroeconomic data holds back the “bullish” activity, indicating a severe economic crisis that erupted in the American (and not only) economy. Yesterday, investors were focused on business activity data in Europe and the United States. In all areas, activity fell as expected, although some actual data were slightly better than forecasts. EU Manufacturing PMI for March fell from 44.8 to 44.5 points against the forecast of a weakening to 44.7 points. German data fell from 45.7 to 45.4 points, which also was worse than analysts' forecasts of 45.5 points.

GBP/USD

Today, during the Asian trading session, the GBP/USD pair shows flat dynamics, trading near 1.2400. USD is still in demand as a shelter asset, however, it is clear that the “bullish” activity is gradually slowing down, partly due to the expectation of new drivers in the market. At the end of this week, a March report on the US labor market will be released, which may put significant pressure on the position of the US currency. Yesterday, investors were focused on the ADP Nonfarm Payrolls report. At the end of March, the employment decreased by 27K after rising by 179K last month. However, the data are positive, as analysts expected a much more significant decrease, by 150K. On Wednesday, the British data on business activity slightly supported the pound. Markit Manufacturing PMI index fell from 48.0 to 47.8 points, which was better than market expectations, which suggested a weakening of the indicator to 47 points.

NZD/USD

Today, during the Asian trading session, the NZD/USD pair is growing slightly, retreating from local lows renewed yesterday. Now, the instrument has added about 0.35% and is testing the level of 0.5930 for a breakout. “Bullish” activity in the US currency is gradually decreasing at the end of the week when the US will publish its March report on the labor market, which will reflect the magnitude of the impending economic crisis. Yesterday, statistics on American business activity were released, as well as an ADP employment report, which unexpectedly was much better than its negative forecasts (–27K versus –150K). Markit Manufacturing PMI fell from 49.2 to 48.5 points with a neutral outlook. The ISM Manufacturing Employment decreased from 46.9 to 43.8 points against the forecast of 43.6 points. The ISM Manufacturing PMI fell from 50.1 to 49.1 points, while forecasts suggested it would drop to 45 points.

USD/JPY

Today, during the Asian trading session, the USD/JPY pair is growing slightly, correcting after yesterday's renewal of local lows since March 18. The dollar and the yen are still competing for the title of the best shelter asset but the current week for the US currency is quite difficult. Poor macroeconomic data from the United States, as well as expectations for the publication of the March report on the labor market at the end of the week, put significant pressure on the dollar. Also, the United States remains the main focus of the currently raging epidemic of coronavirus, which greatly increases the risks of uncertainty.

XAU/USD

Today, during the Asian trading session, the price of gold show flat dynamics, correcting after the growth of the instrument yesterday. However, it could not consolidate above the level of $1.600. Demand for the precious metal remains high amid extremely low investor interest in risk. Also, traders are wary of buying the dollar amid poor macroeconomic statistics and pending Friday's publication of the March report on the US labor market. The growth of gold also due to the closure of gold refineries around the world amid the strict quarantine measures that governments are taking to curb the coronavirus epidemic.

EUR/USD

EUR shows a "bearish" trend against USD during today's Asian session, continuing the development of a downtrend since the beginning of the current trading week. USD is still in high demand, as investors are scared by the situation in the world. So far, depressing macroeconomic publications from the US have little influence on USD; however, the situation is gradually changing, and it will not be possible to ignore evidence of the coming deep economic crisis. The data from the US reflected a sharp increase in the number of Initial Jobless Claims for the week ending March 27 by a record 6.6M, which was almost half worse than the forecast. Today, investors expect the publication of the March report on the US labor market, which also does not bode well. Data from the euro are in the background for the time being. On Friday, European countries will continue to report on business activity in the services sector for March, and the euro area will release February statistics on retail sales.

GBP/USD

GBP begins the last day of the trading week with a flat dynamics against USD, continuing to trade near 1.2400. Demand for USD is supported by a high interest of investors in safe assets and additional sources of liquidity; however, traders are in no hurry to actively sell GBP amid the publication of disappointing macroeconomic statistics from the US. The prospects for the US economy have deteriorated markedly, despite the fact that the peak of the coronavirus epidemic has not yet been overcome. In the current conditions, the onset of a recession in the US economy is almost inevitable, and the darkest forecasts even suggest the beginning of a period of a new "depression". Today investors are focused on the publication of the March report on the US labor market. Among other things, analysts expect a sharp reduction in the number of new jobs and a jump in unemployment to 3.8%.

AUD/USD

AUD is showing slight growth against USD during today's Asian session, retreating from local lows since March 26, updated the day before. Slight support for AUD has increased pressure on USD as negative macroeconomic statistics from the US accumulate. USD is still supported by the status of a safe haven currency; however, investors are seriously scared by the pace of slowdown in the first world economy. Meanwhile, weak macroeconomic statistics from Australia came out today, which, however, was not a surprise. AiG Performance of Construction Index in March fell from 42.7 to 37.9 points. Commonwealth Bank Services PMI for the same period corrected from 39.8 to 38.5 points with a neutral outlook. Commonwealth Bank Composite PMI in March fell from 40.7 to 39.4 points. Consumer sentiment, in turn, was supported by statistics from China, which is gradually recovering from the epidemic. Jibun Bank Services PMI in March jumped from 26.5 to 43 points.

USD/JPY

USD shows weak growth against JPY during today's Asian session, continuing the development of a "bullish" impulse that formed yesterday. The instrument adds about 0.07% and is actively testing the level of 108.00 for a breakout. USD ignored yesterday's publication of statistics from the US, indicating a record increase in the number of Initial Jobless Claims, as investors are still interested in a source of additional liquidity. The "bullish" activity of traders in the first hours of trading on Friday is noticeably lower, since investors have no desire to maintain long positions on the weekend, and in addition, the market expects the publication of a disappointing US labor market report for March. Today's data from Japan indicated a decrease in Jibun Bank Manufacturing PMI from in March from 46.8 to 33.8 points against the forecast of a reduction to 32.7 points.

XAU/USD

Gold prices are falling during today's Asian session, correcting after strong growth triggered by the publication of data on applications for unemployment benefits in the US. Demand for the asset remains quite high against the backdrop of the raging pandemic of coronavirus. Moreover, analysts expect that with the publication of data indicating the beginning of a deep global economic crisis, the demand for the instrument will only increase.

EUR/USD

EUR shows a "bearish" trend against USD during today's Asian session, continuing the development of a downtrend since the beginning of the current trading week. USD is still in high demand, as investors are scared by the situation in the world. So far, depressing macroeconomic publications from the US have little influence on USD; however, the situation is gradually changing, and it will not be possible to ignore evidence of the coming deep economic crisis. The data from the US reflected a sharp increase in the number of Initial Jobless Claims for the week ending March 27 by a record 6.6M, which was almost half worse than the forecast. Today, investors expect the publication of the March report on the US labor market, which also does not bode well. Data from the euro are in the background for the time being. On Friday, European countries will continue to report on business activity in the services sector for March, and the euro area will release February statistics on retail sales.

GBP/USD

GBP begins the last day of the trading week with a flat dynamics against USD, continuing to trade near 1.2400. Demand for USD is supported by a high interest of investors in safe assets and additional sources of liquidity; however, traders are in no hurry to actively sell GBP amid the publication of disappointing macroeconomic statistics from the US. The prospects for the US economy have deteriorated markedly, despite the fact that the peak of the coronavirus epidemic has not yet been overcome. In the current conditions, the onset of a recession in the US economy is almost inevitable, and the darkest forecasts even suggest the beginning of a period of a new "depression". Today investors are focused on the publication of the March report on the US labor market. Among other things, analysts expect a sharp reduction in the number of new jobs and a jump in unemployment to 3.8%.

AUD/USD

AUD is showing slight growth against USD during today's Asian session, retreating from local lows since March 26, updated the day before. Slight support for AUD has increased pressure on USD as negative macroeconomic statistics from the US accumulate. USD is still supported by the status of a safe haven currency; however, investors are seriously scared by the pace of slowdown in the first world economy. Meanwhile, weak macroeconomic statistics from Australia came out today, which, however, was not a surprise. AiG Performance of Construction Index in March fell from 42.7 to 37.9 points. Commonwealth Bank Services PMI for the same period corrected from 39.8 to 38.5 points with a neutral outlook. Commonwealth Bank Composite PMI in March fell from 40.7 to 39.4 points. Consumer sentiment, in turn, was supported by statistics from China, which is gradually recovering from the epidemic. Jibun Bank Services PMI in March jumped from 26.5 to 43 points.

USD/JPY

USD shows weak growth against JPY during today's Asian session, continuing the development of a "bullish" impulse that formed yesterday. The instrument adds about 0.07% and is actively testing the level of 108.00 for a breakout. USD ignored yesterday's publication of statistics from the US, indicating a record increase in the number of Initial Jobless Claims, as investors are still interested in a source of additional liquidity. The "bullish" activity of traders in the first hours of trading on Friday is noticeably lower, since investors have no desire to maintain long positions on the weekend, and in addition, the market expects the publication of a disappointing US labor market report for March. Today's data from Japan indicated a decrease in Jibun Bank Manufacturing PMI from in March from 46.8 to 33.8 points against the forecast of a reduction to 32.7 points.

XAU/USD

Gold prices are falling during today's Asian session, correcting after strong growth triggered by the publication of data on applications for unemployment benefits in the US. Demand for the asset remains quite high against the backdrop of the raging pandemic of coronavirus. Moreover, analysts expect that with the publication of data indicating the beginning of a deep global economic crisis, the demand for the instrument will only increase.

EUR/USD

Today, during the Asian session, the EUR/USD pair is growing moderately, retreating from local lows, renewed yesterday. As before, the current EUR’s attempt to strengthen is technical, while the demand for it remains quite low. However, investors are optimistic about the reports of European countries, which indicate a decrease in cases of new infections with coronavirus, which gives some hope and supports the euro. Published macroeconomic statistics from Europe so far leaves much to be desired. So, the data on the dynamics of production orders in Germany released on Monday reflected a decrease of 1.4% MoM in February after an increase of 4.8% MoM in the previous month. Analysts had expected a decline of 1.9% MoM. According to preliminary estimates for April, the Sentix investor confidence indicator crashed from –17.1 to –42.9 points, which was noticeably worse than market expectations of –30.3 points. On Tuesday, investors are focused on German statistics on the dynamics of industrial production for February.

GBP/USD

Today, during the Asian session, the GBP/USD pair is growing, retreating from local lows of March 27. The pound grows after an uncertain decline last week, which forced him to retreat from highs since mid-March. Some pressure on the British currency has the hospitalization of Prime Minister Boris Johnson. Previously, he was self-isolated and worked remotely due to infection with coronavirus but later he was still forced to seek medical help. British macroeconomic statistics remain negative. So, on Monday the index of business activity in the construction sector came out, which fell from 52.6 to 39.3 points for March against the forecast of a decrease to 44 points.

AUD/USD

Today, during the Asian session, the AUD/USD pair is growing, continuing the development of the “bullish” momentum formed at the beginning of the week. Now, the instrument has added about 1% and is testing the level of 0.6150 for a breakout. On Tuesday, investors are focused on the publication of macroeconomic statistics from Australia, as well as the RBA decision on the interest rate. As expected, the Australian regulator did not change the parameters of monetary policy and kept the rate at a minimum level of 0.25%. The accompanying statement noted significant risks of a slowdown in the global economy due to the coronavirus pandemic. Published statistics reflected a sharp decline in the AiG index of activity in the service sector of Australia in March from 47 to 38.7 points. The vacancy index for the same period from ANZ fell 10.3% after rising 0.7% in February. Experts expected the appearance of negative dynamics but expected a decrease of only 2.9%.

USD/JPY

Today, during the Asian session, the USD/JPY pair significantly reduced, retreating from the local highs, renewed at the beginning of the week. Now, the instrument has lost about 0.4% and is testing the level of 108.70 for a breakdown. The yen is supported by some correction in the US currency and the publication of positive Japanese macroeconomic statistics for February. In turn, its more confident growth is hindered by fears of a state of emergency in the country today against the background of a sharp increase in the number of patients with coronavirus in Tokyo. Japan's matching indicators index in February rose from 95.2 to 95.8 points, which was better than market expectations of 95.1 points. The leading indicators index for the same period jumped from 90.5 to 92.1 points with a forecast of 90.4 points.

XAU/USD

Today, during the Asian session, gold prices are consolidating, retreating from local highs, which were renewed after a sharp increase in the instrument yesterday. The instrument is supported by the strengthening of alarming market sentiment due to a sharp slowdown in the global economy. The quarantine measures that many countries take today in connection with the spread of coronavirus have an extremely negative effect on almost all sectors of the economy, threatening the onset of a long period of recession or even depression. Demand for the dollar remains high but also suffers from the publication of disappointing data from the US, which indicates a record drop in the labor market, rising unemployment, and declining manufacturing activity.

EUR/USD

EUR is weakening against USD during today's Asian session, falling again after strong corrective growth yesterday, which allowed EUR to retreat from local lows since March 25. Timid optimism regarding the stabilization of the situation with the coronavirus makes its way to the market and facilitates reduction of USD, which still serves as a safe haven. The countries of Europe that have suffered the most from the epidemic publish statistics that allow to hope that the peak incidence rate has already been passed, and a number of states have even thought about easing the previously imposed restrictions. Macroeconomic statistics from Europe published on Tuesday also did not hinder the strengthening of EUR. February data on the dynamics of industrial production in Germany indicated an increase of 0.3% MoM, which was much better than market expectations of –0.9% MoM. In annual terms, production rates slowed down from –0.9% YoY to –1.2% YoY, but again came out stronger than their forecasts (–3.9% YoY).

GBP/USD

GBP shows the flat dynamics of trading during today's Asian session, slightly correcting after active growth yesterday. GBP was supported by a slight increase in optimism in the market, which is associated with the approaching peak of the coronavirus epidemic in Europe and the USA. At the same time, British investors are in no hurry to open new long positions on GBP, since Boris Johnson is still in intensive care, and the dynamics of the incidence in the UK continues to trend upward. UK macroeconomic statistics released yesterday were neutral. Halifax House Prices in March showed zero dynamics after rising by 0.2% MoM last month. Analysts had expected positive dynamics to remain at 0.1% MoM. In terms of annual growth rates, the index showed an increase of 3%, accelerating from the previous value of 2.8%.

AUD/USD

AUD declines against USD during today's Asian session, retreating from local highs since March 31, updated the day before. The instrument loses about 0.50%, testing the level of 0.6130 for a breakdown. The pair's decline is taking place against the backdrop of a partial restoration of USD, which was under pressure the day before amid the first signs of stabilization of the situation with coronavirus in the main foci in Europe and the USA. Moreover, Italy and Spain report a drop in mortality, which prompted analysts to predict the timing of the beginning of the weakening of restrictive measures in these countries. The pressure on AUD on Wednesday is exerted by weak macroeconomic statistics from Australia. Home Loans issued in Australia in February decreased by 1.7% MoM after rising by 1.3% MoM last month. Investment Lending for Homes for the same period decreased by 1.9% MoM after a slight increase of 0.05% (revised from +3.6%) for the previous period.

USD/JPY

USD is again showing moderate growth against JPY during today's Asian session, recovering to previous local highs after a correctional rebound the day before. The growth of optimism regarding the stabilization of the dynamics of the incidence of coronavirus in the main foci of the epidemic in Europe and the US contributed to the emergence of corrective sentiment for USD, but it is clear that investors are not yet ready to abandon the source of increased liquidity. Wednesday's macroeconomic statistics from Japan turned out to be ambiguous. Machinery Orders in Japan in February increased by 2.3% MoM after growth of 2.9% MoM in the previous month. Analysts had expected negative dynamics to appear at –2.7% MoM. In annual terms, the indicator fell by 2.4% YoY after decreasing by 0.3% YoY in January. Experts expected a decrease of 2.9% YoY. Japanese Eco Watchers Survey Current Index in March was revised downwards from 27.4 to 14.2 points with a positive forecast of growth to 27.6 points. Eco Watchers Survey Outlook over the same period decreased from 24.6 to 18.8 points with a forecast of 38.1 points. The yen is also under pressure from a state of emergency declared on Tuesday in Tokyo and six other prefectures.

XAU/USD

Gold prices are rising during today's Asian session, recovering from a decline the previous day, which allowed the instrument to retreat from local highs since March 10. The formation of correctional dynamics was caused by the growth of optimistic sentiment in the market against the background of the first signs of stabilization of the situation with the dynamics of the incidence of coronavirus in a number of regions. At the same time, the situation remains difficult, and the potential lifting of quarantine measures in the near future, of course, will not solve the aggravated economic problems.

EUR/USD

Today, during the Asian session, the EUR/USD pair is growing slightly, continuing to develop the “bullish” momentum formed on Tuesday. Yesterday, EUR declined due to the failure of the Eurogroup negotiations, which lasted more than 15 hours. Initially, the meeting was supposed to agree on a new package of measures to support the European economy of more than 500 billion euros but due to several disagreements, a consensus was not reached. However, the Eurogroup intends to continue its negotiations on Thursday, so investors still hope for a positive outcome. Also, today, traders are focused on the ECB Meeting Minutes release. There will be few key macroeconomic statistics from Europe. The February data on import and export of Germany, as well as the February statistics on the dynamics of industrial production in Italy, deserve the most attention. More important are US Initial Jobless Claims data, which last week rose sharply to 6648K.

GBP/USD

Today, during the Asian session, the GBP/USD pair is trading ambiguously, remaining around the ​​local highs since April 2. GBP is supported by a moderate increase in investor interest in risk against the background of some stabilization of the dynamics of coronavirus spread in Europe and the United States. However, investors are extremely cautious, fearing new outbreaks and evaluating the negative economic consequences that are only now beginning to be seen. On Thursday, traders are focused on a block of statistics on industrial production and the dynamics of the UK GDP in February. Also, the National Institute for Economic and Social Research of the United Kingdom will publish estimates of the country's GDP growth rates for March.

NZD/USD

Today, during the Asian session, the NZD/USD pair is growing moderately, trading near the local highs since March 31. NZD is strengthening due to the development of USD correction dynamics, which is slightly weakening due to improved investor sentiment in the market. The statistics of incidence in Europe suggest that the epidemic has reached its peak, and soon, a gradual easing of several restrictive measures may be expected. Some stabilization was outlined in New York, which was hit hardest by the US epidemic. There it is too early to talk about reaching a peak but the general trend is positive. More confident growth in the New Zealand dollar is hindered by the publication of disappointing macroeconomic statistics from New Zealand. So, Electronic Card Retail Sales in March decreased by 3.9% MoM after an increase by 0.5% MoM in the previous month. Analysts had expected positive dynamics of +0.3% MoM. Also, the indicator fell from +8.6% YoY to -1.8% YoY against the forecast of +5.3% YoY.

USD/JPY

Today, during the Asian session, the USD/JPY pair is growing moderately, recovering from a pullback on Tuesday. Now, the US currency is trying to consolidate above 109.00 supported by high demand for shelter assets. In turn, the position of the Japanese yen remains under pressure due to the emergency regime introduced recently in Tokyo and several prefectures surrounding it in response to the accelerated spread of the epidemic within the country. Macroeconomic statistics published on Thursday from Japan remains in the background and does not significantly affect the dynamics of the instrument. Thus, the volume of foreign investment in Japanese stocks for the week of April 3 increased by 422.7 billion yen after a decrease of 1,422.1 billion yen in the previous period. In turn, investment in foreign bonds for the same period fell sharply by 1,056.4 billion yen after an increase of 2.5 billion yen in the previous period.

XAU/USD

Today, during the Asian session, gold prices are recovering, partially compensating for the decline on Tuesday and Wednesday, when the instrument retreated from its local highs since March 10. The instrument is still supported by an uncertain perspective around the coronavirus epidemic. The market is receiving signals that the epidemic may have reached its peak in Europe but investors are afraid to make hasty conclusions. The situation in the United States remains difficult, although the stabilization of new cases of infection has been outlined in New York. Also, investors are awaiting the outcome of today's OPEC+ meeting, which will be held remotely.

EUR/USD

EUR is showing uncertain growth against USD during today's Asian session, continuing the development of the "bullish" trend that formed on April 7. EUR is supported by strengthening correctional sentiments for USD, which is keenly reacting to the publication of disappointing macroeconomic statistics from the USA. On Thursday, investors drew attention to the release of information on Initial Jobless Claims. For the week ending April 3, the number of applications amounted to 6.606M after 6.867M in the previous period with a forecast of 5.2M. Michigan Consumer Sentiment Index in April fell sharply from 89.1 to 71 points, which also turned out to be worse than market expectations of 75 points. Today, investors expect the publication of March statistics on consumer inflation in the United States. In addition, closer to the end of the American session, the United States will publish a Monthly Budget Statement for March.

GBP/USD

GBP maintains the upward direction of trading paired with USD and updates local highs from March 27 during today's Asian session. GBP is ready to end the week with moderate growth against USD amid fluctuations in USD due to the coronavirus and the publication of disappointing macroeconomic statistics from the US. Investors are seriously concerned about the economic consequences of the raging epidemic for the first economy in the world and are trying to somehow minimize their risks. The macroeconomic statistics from the UK published yesterday was contradictory. UK GDP in February showed a decrease of 0.1% MoM despite the expected growth of 0.1%. At the same time, Manufacturing Production in February unexpectedly accelerated from 0.4% MoM to 0.5% MoM, which was better than forecasts of 0.1% MoM.

AUD/USD

AUD shows ambiguous dynamics of trading against USD and is consolidating near local highs since March 12, updated the day before. Today, exchanges are closed in many countries due to Good Friday, so trading activity remains low. However, given the high level of volatility in the market, it is possible that in the afternoon, with the publication of US data, activity will begin to gradually recover. During the Asian session, traders are focused on the publication of macroeconomic statistics from China. In March, Consumer Price Index slowed down from 5.2% YoY to 4.3% YoY, which turned out to be worse than expert estimates at 4.8% YoY. On a monthly basis, consumer inflation in March fell by 1.2% MoM after rising by 0.8% MoM in February. Analysts had expected negative trend to appear, but counted on only 0.7% MoM decline.

USD/JPY

USD is trading ambiguously against JPY during today's Asian session, maintaining a downtrend amid an attempt of the instrument to correct downwards since April 7. Pressure on USD was exerted by weak macroeconomic statistics, which exposes the depressing prospects for the economy in the near future. This is about prospects for the global economy, but the data from the USA are still at the forefront. Statistics from Japan published today remained without any attention from traders. At the same time, the volume of bank lending in March slightly decreased from 2.1% YoY to 2.0% YoY, which coincided with expert estimates. Producer Price Index for the same period decreased by 0.4% YoY after rising by 0.8% YoY in February. Analysts had expected decline by 0.1% YoY. MoM, Producer Price Index in March fell by 0.9%, accelerating from –0.4% in February. The indicator was worse than the forecast of –0.7% MoM.

XAU/USD

Gold prices rose significantly (about 3%) at trading yesterday, approaching the level of 1690.00, which is the highest since March 9. The data on Initial Jobless Claims in the United States again put pressure on USD, which is already subject to correctional sentiment this week. New measures to support the economy, which countries are taking in response to the economic consequences of the coronavirus epidemic, are also increasing gold demand. On Thursday, it became known that the Fed plans to implement an additional program of support for small businesses in the amount of USD 2.3 trillion.

EUR/USD

EUR is falling slightly against USD during today’s Asian session, retreating from local highs, updated at the end of last trading week. Trading activity remains quite low, as European markets remain closed on Easter Monday. Investors are still focused on the coronavirus situation. Some signs of stabilization of the situation in Europe and the USA give certain hope to market participants; however, it’s still premature to talk about overcoming the peak of the epidemic. Macroeconomic statistics from the US published last Friday put pressure on USD. Consumer Price Index in March decreased by 0.4% MoM after rising by 0.1% MoM in February. Analysts had expected decline by 0.3% MoM. In annual terms, inflation growth slowed from 2.3% YoY to 1.5% YoY, which also turned out to be worse than market expectations of 1.6% YoY.

GBP/USD

GBP is trading higher against USD, located near the local highs, updated on April 10. Against the backdrop of the thin market and continuing concerns about the prospects for the development of the global economy, GBP is supported by investors, responding to the favorable course of the disease with British Prime Minister Boris Johnson, who left the intensive care unit last week. Additional pressure on the position of the US currency was provided by the approval of the new loan program of the Fed for small and medium-sized businesses. Investors are increasingly paying attention to quantitative indicators of the US economy, each time reviewing analysts' forecasts for the worse. The Friday data on consumer inflation in the USA for March, which came out noticeably worse than market expectations, were no exception.

NZD/USD

NZD shows flat dynamics against USD during today's Asian session, trading near the local highs since March 16, which the instrument managed to update at the end of last week. The pair is trying to consolidate below 0.6070; however, the reason for its slight correction is mainly due to technical factors. Investors remain focused on Friday's data on consumer inflation from the US and China. As expected, the data disappointed investors. Chinese Consumer Price Index in March declined by 1.2% MoM after an increase of 0.8% MoM in February. Analysts expected a decline of 0.7% MoM. In annual terms, the index has slowed from 5.2% YoY to 4.3% YoY, with the forecast of 4.8% YoY.

USD/JPY

USD is falling against JPY during today's Asian session, continuing to develop the "bearish" impulse that formed in the market at the beginning of last week. The instrument loses about 0.40%, testing the level of 108.00 for a breakdown. Demand for JPY remains quite low after Japan began to impose a state of emergency in Tokyo and a number of prefectures surrounding it amid a sharp increase in the incidence of coronavirus. Investors fear that the peak of the epidemic for Japan is yet to come, while in the US, despite the depressing statistics, it seems that some stabilization is expected.

XAU/USD

Gold prices are falling during today's Asian session, retreating from local highs since March 9, which the instrument managed to update at the opening of trading this week. Investors fix their long profits after active asset growth last Thursday (markets were closed due to the religious holiday on Friday), while gold demand remains quite high, especially given the new measures to support the economy from the Fed and the disappointing macroeconomic statistics from the US.

EUR/USD

Today, during the Asian session, the EUR/USD pair is growing, recovering from a correctional decline yesterday, when the euro retreated from its local highs of the beginning of the month. On Tuesday, the currency was slightly supported by positive macroeconomic statistics from China, which defused the overall negative market situation a bit. Thus, the March volume of exports decreased by 6.6% YoY after a decrease by 17.2% YoY for February. Analysts had expected a drop by 15% YoY. Imports for the same period decreased by only 0.9% YoY against the forecasts of a decrease by 8% YoY. The trade surplus in March amounted to $19.9 billion, which was slightly better than market expectations of $18 billion.

GBP/USD

Today, during the Asian session, the GBP/USD pair is actively growing, renewing the maximum since March 13 of this year. Investors continue to buy the pound as a source of additional risk amid some correction in the US currency, while markets ignore the growing threats regarding the rate of spread of coronavirus in the UK. Meanwhile, yesterday the number of deaths from the illness in the country reached 10K people, and analysts believe that the UK may show some of the worst epidemiological results in all of Europe. Earlier this week, the UK Treasury Secretary said the country could lose up to 30% of its GDP this quarter.

AUD/USD

Today, during the Asian session, the pair AUD/USD is growing moderately, renewing local highs since March 12. Now, the Australian dollar has added about 0.64% and is testing the level of 0.6420 for a breakout. The currency almost completely ignores negative macroeconomic publications from Australia, while responding positively to optimistic signals from the Chinese economy. The National Bank of Australia’s business confidence index for March fell sharply from –2 to –66 points against a neutral outlook. The NBA business environment index for the same period dropped from 0 to –21 points, which is also worse than market expectations. On Thursday, investors expect the publication of March statistics on the Australian labor market. It is predicted that the level of employment in the country could drop sharply by 40K places, and the unemployment rate will rise from 5.1% to 5.5%.

USD/JPY

Today, during the Asian session, the USD/JPY pair is falling, trading near local lows since April 2, renewed yesterday. Against the background of some correction of the American currency, the yen for some time has become an attractive option for investors looking for shelter assets. In turn, the situation with coronavirus remains difficult in the United States and Japan. On Tuesday, American statistics on the dynamics of import prices for March and the Redbook retail sales index for the week of April 10 are in the spotlight. Key data from Japan will begin to enter the market only at the end of the week when the country will report on industrial production and capacity utilization for February.

XAU/USD

Today, during the Asian session, gold prices show flat trading dynamics, consolidating near record highs since November 2012, renewed due to the active growth of the instrument at the end of last week and on Monday. Demand for the precious metal continues to remain high amid growing uncertainty in the market. Also, recently there has been a correlation between the growth of gold and stock exchanges, which are also trying to go into an upward correction due to some stabilization of the situation with coronavirus in Europe and the USA. Additional support for the course is provided by the approval of a new OPEC+ agreement aimed at reducing oil production by 10 million barrels per day.

EUR/USD

EUR is trading in flat during today's Asian session, consolidating near new local highs since April 1. Yesterday EUR managed to demonstrate an active positive trend against USD, having received support from the growth of optimistic sentiment in the market. The main reason for increasing the interest of traders in risk remains some stabilization of the situation with the spread of coronavirus in Europe. For example, Germany, Italy and Spain report a slowdown in the number of new infected people, while Denmark is gradually repealing quarantine restrictions previously introduced. European investors are now focusing on consumer inflation statistics for March in France, Spain and Italy. With the opening of the American session, the focus will shift to the March dynamics of retail sales and the new economic review (Beige Book) from the US Federal Reserve.

GBP/USD

GBP is trading with multidirectional dynamics against USD during today's Asian session, consolidating near the local highs since March 12. GBP is showing growth amid the development of correctional sentiment in USD as the situation with coronavirus in Europe stabilizes. European countries publish encouraging statistics on the dynamics of the morbidity and mortality from the virus, which gives hope for the gradual lifting of quarantine restrictions and the restoration of economic activity. In the next few days, the UK government should decide to extend the restrictive measures. The negative and at the same time the most realistic scenario suggests that the deadlines will be extended until early May.

NZD/USD

NZD declines against USD during today's Asian session, retreating from local highs updated the day before. The decrease in the instrument is largely technical in nature, while USD remains under pressure against the background of a gradual improvement in the situation with coronavirus in Europe. Slight pressure on NZD is exerted by the publication of weak macroeconomic statistics from New Zealand. The data released yesterday reflected a sharp decrease in Visitor Arrivals in February by 10.8% YoY after an increase of 2.9% YoY in January. It is obvious that the March statistics for this indicator will be even worse due to the travel restrictions introduced everywhere. REINZ House Price Index for March released today slowed sharply from +3.1% MoM to +0.7% MoM, which also turned out to be worse than the average market expectations.

USD/JPY

USD continues to decline against JPY, updating local lows since March 18 during today's Asian session. Demand for USD is noticeably declining in the market as prospects with a coronavirus in Europe improve. Additional pressure on USD is exerted by weak macroeconomic statistics from the US, which indicates the approach of a deep economic crisis, which threatens the whole world. According to estimates of the International Monetary Fund, the global economy may decline by 3% in 2020. Today, investors are awaiting the publication of macroeconomic statistics from the US on the dynamics of Retail Sales and Industrial Production for March. Closer to the end of the afternoon session, the Fed will release an updated economic review called The Beige Book.

XAU/USD

Gold prices show flat dynamics during today's Asian session, somewhat deviating from record 7-year highs, updated the day before. Demand for gold is growing in proportion to its decline in USD, as the prospects for coronavirus improve the uncertainty associated with damage to the global economy from widespread restrictions grows. It is obvious that in 2020 the world economy will show a decline, but how deep the economic crisis will be is not yet known. It should also be noted that different regions will suffer from the crisis in different ways. Europe, for example, is already showing decline in the number of new cases, while in some regions steady growth is still observed.