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Today, the US currency strengthens against the euro and the yen but weakens to the pound. Investors are focused on the publication of data on GDP and initial jobless claims in the USA, which turned out to be above the market expectations. The US economy in Q2 contracted by 32.9%, which is an all-time high, but investors expected an even worse fall of 34.1%.
Weekly data on initial jobless claims from the USA will be released at 14:30 (GMT+2). The indicator measures the number of people who applied for unemployment benefits for the first time in the past week. These data are collected by the Department of Labor and published in a weekly report. Initial Jobless Claims indicator is used to measure the state of the labor market, since an increase in the indicator means that fewer people are hired. It is expected that the indicator may increase from 1.416M to 1.450M.
At 14:30 (GMT+2), preliminary data on the US GDP in Q2 2020 will be released. The GDP is the main indicator reflecting the state of the national economy. It takes into account domestic consumption, investment, government spending and exports. It is expected that the US economy will contract by 34.1%. The implementation of the forecast can cause pressure on USD.
At 14:00 (GMT+2), German preliminary data on the Consumer Price Index for July will be released. It is the main indicator of inflation in the country and determines the change in the level of retail prices for a particular basket of goods and services: food, transportation, utilities, healthcare, etc. It has a significant impact on monetary policy decisions. It is expected that the Consumer Price Index on an annualized basis will decrease from 0.9% to 0.2%, and on a monthly basis it is expected to decline from 0.6% to –0.2%. The implementation of the forecast can put pressure on EUR.
This month, silver is actively growing. During the week, the price once again renewed its annual highs at 26.17, however, it has now started a downward correction, which may continue to the levels of 21.87 (Murrey [6/8]) and 20.65 (the midline of Bollinger Bands), as evidenced by Stochastic leaving the overbought zone.
On the H4 chart, a strong downtrend has formed. The instrument is decreasing along the lower border of the Bollinger Bands; an upward correction is observed, the indicator cloud is expanding; the decline is likely to resume in the short term after the correction is completed. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic is crossing the oversold zone from above, keeping a signal to open short positions.
June Unemployment Rate data from the eurozone are due at 11:00 (GMT+2). The indicator records the percentage of the number of unemployed citizens older than 18 to the total number of the population able to work. Only registered unemployed citizens are counted. The indicator is expected to increase from 7.4% to 7.7%, which may put pressure on EUR.
AUD is slightly declining against USD during today's Asian trading, staying at record highs of April 2019. The instrument loses about 0.20%, testing the level of 0.7165 for a breakdown.