Morning Market Review
EUR/USD
Today, during the Asian session, the EUR/USD pair is correcting, retreating from local highs of May 1, renewed yesterday. The decrease is due to technical factors, as investors are cautious against the background of a high level of uncertainty in the market. Yesterday, published macroeconomic statistics from the EU strengthened the "bearish" sentiment. So, the consumer price index for April slowed down from +0.5% MoM to +0.3% MoM, which coincided with the expectations of traders. In annual terms, the indicator decreased from +0.4% YoY to +0.3% YoY, while it was predicted that the previous value of +0.4% YoY will maintain. At the same time, the May level of consumer confidence slightly increased from –22 to –18.8 points, while forecasts assumed its further decrease to –24 points. On Thursday, investors focused on business statistics from Markit in Germany, France, and the EU in May.
GBP/USD
Today, during the Asian session, the GBP/USD pair is falling, retreating from the local highs, renewed last Tuesday. Now, the pound is trying to consolidate below 1.2200, waiting for new drivers. On Wednesday, a large number of UK key statistics entered the market. In April, the consumer price index fell by 0.2% MoM, which was below market expectations of –0.1% MoM. In annual terms, the indicator slowed down from +1.5% YoY to +0.8% YoY, also being worse than expected. On Thursday, investors focused on Markit data on business activity in the manufacturing and services sectors for May. Analysts expect a moderate increase in indicators, so the instrument can win back part of the morning loss.
AUD/USD
Today, during the Asian session, the AUD/USD pair is falling within the correction, retreating amid the widespread strengthening of the US currency. Market optimism declined after the media criticized Moderna’s recent press release, saying it had made significant headway in creating a coronavirus vaccine. Australia's macroeconomic statistics released on Thursday was ambiguous. So, the PMI in the manufacturing sector from Commonwealth Bank for May fell from 44.1 to 42.8 points against the forecast of growth to 46.5 points. A similar indicator in the service sector increased from 19.5 to 25.5 points, while the composite index for May rose from 21.7 to 26.4 points.
USD/JPY
Today, during the Asian session, the USD/JPY pair is strengthening, recovering from the “bearish” trading on Wednesday. Positions of the American currency are growing across the entire spectrum of the market; however, there are still few fundamental reasons for such dynamics. It is worth noting only a slight decrease in optimism about the imminent invention of the vaccine after the report of the biotechnological company Moderna was subjected to extensive criticism in the media. Japanese macroeconomic statistics released on Thursday was ambiguous. Thus, export volumes in April decreased by 21.9% YoY, which was only slightly better than the expected decrease of 22.7% YoY. Imports for the same period fell by 7.2% YoY against expectations of –12.9% YoY. The total trade balance in April reached the level of –930.4B yen, which was significantly lower than the forecast assuming a surplus of 67.4B yen. Jibun Bank's manufacturing PMI fell from 41.9 to 38.4 points.
XAU/USD
Today, during the Asian session, gold prices are falling, retreating after two sessions of slight growth. Pressure on the instrument is exerted by the rising dollar, which again interested investors amid declining optimism in the market. The instrument is positively influenced by the continued expectations of new support measures from the leading Central Banks of the world, as well as the general negative mood of the market regarding the prospects for a quick recovery of the global economy. On Thursday, traders are focused on the publication of Initial Jobless Claims data for the week of May 15. Analysts expect a slight slowdown from the previous value of 2981K to 2400K, which may support the dollar. At the end of the day, Fed Chairman Jerome Powell will speak, which may shed light on new measures to support the US economy.