Morning Market Review

EUR/USD

EUR shows insignificant gains against USD during today's Asian session, developing a correctional impulse that formed yesterday, when the instrument retreated from its local lows since August 12. The recovery of EUR is facilitated by the weakening of USD after a short growth against the background of the results of the Fed meeting. On Wednesday, the regulator left interest rates and volumes of the quantitative easing program unchanged, noting the readiness to use all available instruments, as well as the need for additional stimulation of the national economy. Additional pressure on USD was provided by data from the US. The number of Initial Jobless Claims for the week ending September 11 fell from 893K to 860K, which was slightly worse than market expectations of 850K. Building Permits in August reflected a drop of 0.9% MoM after rising by 17.9% MoM in July. Markets expected a moderate 4.4% MoM growth.

GBP/USD

GBP is showing ambiguous dynamics at the end of the trading week, consolidating near 1.2950. Yesterday, investors took a lead from the published minutes of the Bank of England meeting, which provoked a sharp decline in the instrument during the day. As expected, the regulator made no changes into the monetary policy parameters. The rate remained at 0.1%, and the asset purchase facility remained at the level of GBP 745 billion. At the same time, it became known that members of the board were considering the potential possibility of applying negative interest rates, if the economic situation so requires. Investors reacted to such statements with a wave of selling; however, by the end of the trading session on Thursday, GBP still managed to win back most of its losses. Additional pressure on the instrument remains due to the uncertainty surrounding Brexit. The bill proposed by the British Prime Minister effectively thwarted the negotiation process, which was already not particularly optimistic.

AUD/USD

AUD strengthens marginally against USD during today's Asian trading session, developing flat dynamics in the short term. AUD is recovering after a hesitant attempt by USD to strengthen amid the publication of neutral minutes from the Fed meeting. The instrument was supported by the data from Australia the day before. The markets reacted rather optimistically to the decline in the Unemployment Rate in Australia from 7.5% to 6.8%, while forecasts assumed its growth to 7.7%. At the same time, the Employment Change increased by 111K after increasing by 119.2K last month. Analysts had expected employment to drop by 50K jobs. Today, investors are focused on the Michigan Consumer Sentiment Index release in the US.

USD/JPY

USD is showing corrective gains during today's morning trading session, retreating from local lows since July 31, updated the day before. The growth of the instrument is supported by technical factors, as investors fix their profits before the weekend. In addition, JPY positions on Friday are under pressure from not the most confident macroeconomic statistics from Japan. National Consumer Price Index slowed down in August from +0.3% YoY to +0.2% YoY, which turned out to be sharply worse than market expectations of growth to +0.6% YoY. National Consumer Price Index Excluding Food and Energy slowed down from +0.4% YoY to +0.2% YoY, which also turned out to be worse than the neutral forecasts.

XAU/USD

Gold prices show corrective growth during today's Asian session, recovering after the decline the day before. The asset fell by more than 1% on Thursday, responding to the minutes of the Fed meeting published on Wednesday, which did not contain specific measures to further support the US economy. Moreover, the regulator tried to support the markets by issuing updated, more optimistic forecasts for the pace of economic recovery and normalization of the situation in the labor market. In turn, the minutes of the meeting of the Bank of England, released yesterday, contributed to a moderate rise in gold. The regulator did not change the parameters of monetary policy; however, traders learned that the Bank of England is seriously considering the prospects of introducing negative interest rates.