United States of America

USD is growing against EUR, GBP, and JPY.

Analysts assess Friday’s statistics on the labor market. The unemployment rate fell from 4.3% to 4.2% due to the nonfarm payrolls growth from 89.0K to 142.0K. Private nonfarm payrolls increased from 74.0K to 118.0K. After the publication of statistics, the forecasts of the Chicago Mercantile Exchange (CME) FedWatch Instrument in favor of a low interest rate cut of 25 basis points to 5.00–5.25% at the September meeting of the US Fed changed from 69.0% to 74.0%. It confirmed the opinion of some experts that the regulator’s officials will exercise caution and make minimal changes to the monetary policy without affecting the market.

Eurozone

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

The Q2 gross domestic product (GDP) fell from 0.3% to 0.2%. However, the figure increased from 0.4% to 0.6% YoY, supporting the “dovish” mood of the European Central Bank (ECB) officials before the meeting on September 12. The regulator’s plan to cut the interest rate two more times before the end of the year has become more relevant, and the first adjustment can be expected soon, and the second – from November to December, after the publication of Q3 data.

United Kingdom

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

The negative dynamics of the currency are due to the lack of publications from the UK at the beginning of the week, while the global trend remains positive. Thus, on Friday, according to data from one of the country’s largest mortgage lenders, Halifax Bank Plc., the house price index increased by 0.3% MoM, exceeding forecasts of 0.2%, and from 2.4% to 4.3%, has been growing for the second month. Since the construction sector is the most lagging in the national economy, stabilization of house prices may allow Bank of England officials to continue cutting interest rates and ease pressure on the economy.

Japan

JPY is weakening against EUR, GBP, and USD.

The Q2 gross domestic product (GDP) increased from –0.6% to 0.7% QoQ and from –2.4% to 2.9% YoY. However, the data could not significantly affect the quotes, reflecting the current state of the economy compared to the weakest period of the year. Compared to the average indicator since the beginning of the year, the national economy weakens. Additional indicators confirm it, as the July household spending adjusted from 0.1% to –1.7%.

Australia

AUD is strengthening against JPY and GBP but is declining against EUR and USD.

Today, July data on the dynamics of the main sectors of the economy were published. The business turnover increased by 1.0% MoM after a decline in June and May. The transport sector ( 4.0%), scientific and technical services ( 3.9%), construction ( 2.3%), and wholesale trade ( 2.0%) strengthened the most, while retail trade (–1.6%) and the media (–1.6%) declined the most. As a result, thirteen sectors of the economy showed an increase. Its leaders for the year were electricity and gas supply ( 16.8%), as well as the professional and scientific services sector ( 8.4%). It may affect the decision officials of the Reserve Bank of Australia (RBA) on monetary policy, and after a long period of maintaining the interest rate, they may decrease it.

Oil

Oil prices are trying to stop the decline that began last week, as the American Petroleum Institute (API) weekly crude oil reserves report reflected a decrease of 7.400M barrels instead of the predicted 0.900M barrels. Also, the Energy Information Administration of the US Department of Energy (EIA) reported a decrease in reserves by 6.873M barrels.

Against these data and the oil prices falling below 73.0 dollars, OPEC members decided to postpone planned increase of the oil production quotas from October to December. Thus, all current agreements on the voluntary oil production reduction will be extended for another three months. In the event of a further price decrease, the Monitoring Committee may reduce production volumes further.