EUR/USD

The EUR/USD pair is trading in the narrow range of 1.1000–1.0980. The day before, a block of statistics was published in the euro area, which may affect the decisions of the European Central Bank (ECB). According to preliminary data for the second quarter, the region's economy grew by 0.6% QoQ, instead of the expected 0.5%, and 0.3% YoY instead of 0.2%. The July CPI fell from 0.3% to -0.1% MoM and from 5.5% to 5.3% YoY, while the Core CPI fell from 0.4% to -0.1% MoM, and remained at the same level of 5.5% YoY, causing investors to hope for an improvement in economic prospects. The positive dynamics of the indicators may contribute to the transition of the European regulator to keep the interest rate at the current level, although at least one increase may still be required, as core inflation remains significant. Currently, the EUR/USD pair remains flat, as investors await the publication of July data on business activity in the manufacturing sector in the US and the eurozone. It is predicted that the European Manufacturing PMI will decrease from 43.4 points to 42.7 points, while the American index may rise from 46.0 points to 46.8 points. It is likely that both indicators will remain in the stagnation zone, illustrating the problems of the industry of the world's leading economies against the backdrop of a reduction in demand for products due to rising household living costs. Also today, JOLTS Job Openings statistics for June will be published: the figure may decrease from 9.824 million vacancies to 9.610 million, which will put pressure on the US currency.

GBP/USD

The GBP/USD pair is trading in a narrow range of 1.2840-1.2815. Yesterday, the June data on lending were published in the UK, which supported the positions of the British currency. Consumer Credit was 1.661 billion pounds, beating the forecast of 1.300 billion pounds, Mortgage Lending rose to 0.14 billion pounds from the expected 0.10 billion pounds and Net Lending to Individuals added 1.8 billion pounds, while experts expected 1.0 billion pounds, signaling that a serious economic downturn in the country could be avoided, despite the current high inflation rate. Currently, investors are evaluating the July data on the UK Manufacturing PMI: the figure was 45.3 points after 45.0 points a month earlier, while analysts did not predict changes in the index.

AUD/USD

The AUD/USD pair was actively declining today and is now trading around 0.6650. The Australian currency came under pressure amid the results of the meeting of the Reserve Bank of Australia (RBA). The regulator left the interest rate at 4.10%, contrary to the expectations of experts, who had expected that the value will again be increased by 25 basis points. The Governor of the regulator, Philip Lowe, said that the high cost of borrowing contributes to the cooling of demand and will continue to contain the growth of consumer inflation. Officials upheld the forecast, according to which inflation in the country will return to the target range of 2.0-3.0% by the end of 2025. The Australian dollar was further pressured by June construction data, with Building Permits down 7.7% after rising 20.5% a month earlier, and Home Loans down 2.8% after rising 5.1% in the previous month.

USD/JPY

The USD/JPY pair is rising, trading around 142.75. The yen is under pressure from the July data on the Manufacturing PMI in Japan: the figure fell from 49.8 points to 49.6 points, while experts had expected 49.4 points. In general, Japanese industrial activity continues to slow down for the second month in a row, as new orders decline as well as output, which is declining amid the global economic crisis. The national economy manages to maintain growth at the expense of the services sector against the backdrop of the lifting of quarantine restrictions. Today, the June data on the labor market in Japan were published: the Unemployment Rate corrected from 2.6% to 2.5%.

XAU/USD

The XAU/USD pair is falling again today, trading around 1955.00. The day before, quotes managed to show an upward trend on the back of positive data on the growth of the European Gross Domestic Product (GDP), but today the decline in prices resumed after the publication of Chinese statistics on business activity in the manufacturing sector from Caixin. The indicator fell from 50.5 points to 49.2 points, being in the stagnation zone. The downturn in China's industry increases the risks of a worsening global economic crisis and puts pressure on assets alternative to the US currency, including precious metals.