After the meeting of the Bank of Japan, the JPY dynamic confirms the main points of it. The current form of monetary policy is really bearing fruit: macroeconomic indicators are improving, and market participants expect positive results from data on retail sales and industrial production.
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Since the beginning of the year, the EUR/USD pair has been under strong pressure from a number of factors, reaching the November lows of last year near 1.1000. The main reason for the decline is the continued strengthening of USD against most major currencies. Today, investors wait for the Fed's Interest Rate Decision. During this month, there were opinions regarding a possible easing of monetary policy, however, the current high positions of the national currency indicate the opposite, and the rate is likely to stay the same.
Today, during the Asian session, the USD/CAD pair is growing slightly, being corrected after yesterday’s active decline, as a result of which the dollar retreated from its local highs from December 11, 2019. Yesterday, USD was under pressure of poor US Durable Goods Orders data.
Today, during the Asian session, gold prices are relatively stable and are consolidating near the level of 1565.00, where the instrument decreased during an active decline on the eve.
Today, during the Asian session, oil prices are growing moderately, continuing to develop the “bullish” momentum formed yesterday. The instrument also retreats from its local lows since October 21, 2019, which were renewed as a result of a five-day last week’s decline.
After a significant increase at the end of 2019, the GBP/USD pair entered a stage of tapering consolidation. In the second half of January, the price rose on favorable data on the labor market and major UK indices, while negative data on industrial production were published in the United States.
This week, the pair is dropping amid growing concern over the economic impact of an outbreak of coronavirus.
North American WTI Crude Oil continues to decline, reaching 22% of the maximum recorded on January 8. Commodity Futures Trading Commission data show a decrease in speculative positions in crude oil by 46.7K, which is expected against the increasing risk of falling energy demand due to the Chinese coronavirus.
USD is showing moderate growth during today's Asian session, recovering from a decline the day before. The instrument adds about 0.1%, testing the level of 0.9700 for a breakout. US macroeconomic statistics released on Monday had a mixed effect on USD. New Home Sales for December fell by 0.4% MoM after falling by 1.1% MoM last month.
Today, during the Asian session, the AUD/USD pair shows an ambiguous dynamics of trading after a steady yesterday’s weakening.