United States of America

USD is falling against GBP, showing neutral dynamics against EUR. and rising against JPY.

The currency has settled around ​​annual lows just above 100.00 points in USDX amid the US Fed’s decision to adjust the interest rate by –50 basis points, taken after the publication of statistics on the labor market. Initial jobless claims fell from 231.0K to 219.0K, the lowest since May, and the total claims from 1.843M to 1.829M. On the other hand, the existing home sales market in August fell from 3.96M to 3.86M, a low since the beginning of the year.

Eurozone

EUR is falling against GBP, rising against JPY, and showing neutral dynamics against USD.

The currency failed to break the annual high amid poor German macroeconomic data. The August producer price index remained at 0.2% MoM and –0.8% YoY, and the lack of positive dynamics for the second month increases investors’ uncertainty about the recovery of indicators soon. At 17:00 (GMT 2), the head of the European Central Bank (ECB), Christine Lagarde, will speak, which may clarify the prospects for monetary policy. In anticipation, trading volatility has noticeably decreased.

United Kingdom

GBP is strengthening against EUR, JPY, and USD.

Positive dynamics are developing for the third session in a row, and the currency has renewed annual highs amid strong macroeconomic statistics. The August core retail sales index increased from 1.0% to 1.1% MoM and from 1.4% to 2.3% YoY, while their volumes increased from 0.7% to 1.0% and from 1.5% to 2.5%, respectively, showing the fastest pace since May.

Japan

JPY is falling against EUR, GBP, and USD.

Negative dynamics are developing amid poor inflation data. The August national consumer price index increased by 0.5% MoM, renewing the high among developed countries, and from 2.8% to 3.0% YoY, while the core indicator, excluding food and fuel from the calculations, changed from 2.7% to 2.8%. Despite the statistics, the Bank of Japan officials did not dare to raise the interest rate, keeping it at 0.25%, as analysts expected. Most likely, in the context of a sharp decline in the cost of borrowing, the US Fed needed some compensation to soften the impact on the yen to reduce the gap in the values.

Australia

AUD is strengthening against JPY but is falling against USD, EUR, and GBP.

After yesterday’s labor market data from the Australian Bureau of Statistics (ABS), the quotes are trying to continue the upward trend. In addition, an assessment of the sector’s positions against long-term trends was published. In trend terms, employment growth of 40.0K or 0.3% exceeded the average employment growth over the past 20 years of 0.2%, and the number of hours worked rose by 0.2%, below the average. The underemployment rate remained at 6.4%, and the seasonally adjusted unemployment rate was 4.1%, which led to the labor force underutilization rate remaining at 10.6%, the same as a year earlier. The economic activity rate reached a historical high of 67.0 points, and the employment-to-population ratio is at an annual record of 64.2%. Thus, the prospects for the industry’s recovery are increasing, supporting the national currency in the long term.

Oil

Oil quotes are trading just above 73.00.

Yesterday, Bloomberg published another confirmation that the US government is artificially lowering prices on the world market by selling large oil volumes. Analysts reported that in mid-September, reserves in the Cushing terminal reached a low in the last ten years, and among the main reasons, experts name large volumes of American energy supplies to Eurozone countries and an increase in transportation via the Canadian TransMountain pipeline, mainly directed to storage facilities on the Pacific coast. In addition, oil demand in the Eurozone has increased significantly following supply restrictions from Libya amid heightened geopolitical tensions in the Middle East.