AUD is marginally strengthening against USD during today’s Asian session, recovering from a strong decline late last week as the instrument retreated from its record highs since February 2019.
Forex forecasts and market outlooks
High-quality Forex forecasts and financial market reviews from professional analysts are added daily!
Clients of the Tifia broker get exclusive access to high-quality materials from independent analytical agency Claws&Horns in their Client Cabinet: technical and fundamental market analysis, Forex economic event calendar, currency, stock, index forecasts, trading indicators signals and much more.
Since the beginning of trading, the USD/CHF pair has renewed its March low due to the fall of USD but now corrects upward, trading around 0.9160.
The UK Manufacturing PMI for July is due at 10:30 (GMT+2). The indicator is compiled from the enterprises responses about their purchasing activities and supply situations. At the same time, the attitude of purchasing managers to the current economic situation and prospects for its further development is evaluated. According to forecasts, the indicator may remain at the same level of 53.6 points.
GBP demonstrates moderate gains against USD again today, returning to the local highs, updated at the end of last week. The instrument adds about 0.10% and is testing the level of 1.3100 for a breakout.
The leading Japanese stock index Nikkei 225 falls due to extremely negative data from global corporations, trading near 22100.0.
EUR shows flat dynamics of trading during today's Asian session, consolidating after the corrective decline in the instrument at the end of last week. On Friday, after updating record highs since May 2018, EUR fell sharply, which was mainly due to technical factors of taking long profits ahead of the weekend. Additional pressure on EUR positions was exerted by weak macroeconomic statistics on the dynamics of GDP in the euro zone for Q2 2020. In quarterly terms, GDP showed a 12.1% QoQ decline after a 3.6% QoQ contraction in the prior period. The indicator came out close to its forecasts at –12% QoQ. In annual terms, the decline in GDP in the euro area amounted to 15% YoY, which turned out to be slightly worse than analysts' expectations at the level of –14.5% YoY. In turn, data on consumer inflation in the euro area for July contributed to the strengthening of EUR.
Manufacturing PMI data for July in Germany will be published at 09:55 (GMT+2). The indicator is compiled from the enterprises responses about their purchasing activities and supply situations. At the same time, the attitude of purchasing managers to the current economic situation and prospects for its further development is evaluated. The index is expected to decline from 45.2 to 44.6 points. The implementation of the forecast can put pressure on EUR.
The USD/CAD pair falls due to the positive Canadian statistics and trades at the level of 1.3400.
USD is showing ambiguous trading dynamics against JPY during today's Asian session, trying to develop corrective growth, the momentum for which was formed at the end of last week.
Upward trend maintains.
On the daily chart, the third wave of the higher level (3) develops, within which the wave 5 of (3) forms. Now, the wave iii of 5 of the lower level is developing, within which the wave (iii) of iii is forming. If the assumption is correct, the price will grow to the levels of 2020.00–2050.00. In this scenario, critical stop loss level is 1937.24.