EUR/usd
Though with certain hesitations the single currency continued to move up yesterday. To be more exact, the US dollar continued its retracement. eurusd in the heat of the US session rose above 1.3170 and even managed to hit a new high since July 11, however it wasn't followed by an upward move. To some extent, it is connected with low trading activity in the absence of important macroeconomic news yesterday. Looking back at yesterday's statistics, Existing Home Sales deserve attention. Against expectations, this indicator shrank to 5.07bln in June (at the seasonally adjusted annual rate), while it had been forecasted that it would grow from 5.14 to 5.27bln. The dollar's decline could be attributed to the housing statistics (as the intraday high was set after the news release), if the growth hadn't begun earlier. Yesterday we also mentioned that technically there's nothing surprising about the further decline of USD. Moreover, we expect that this decline will continue as there isn't much macroeconomic news scheduled for today. Only secondary data on the industrial production in France will be released this day, and they will hardly change the distribution of forces in the market, where a series of poor economic data and also rhetoric of the Fed's officials force the market participants reconsider their forecasts regarding the beginning of bond-buying cuts by the American CB. This revision of the prospects of the policy put pressure on USD and at the same time support the US stock exchanges. An old, almost forgotten correlation!
GBP/USD
The sterling once again made its fans happy, continuing to hit fresh monthly highs. Over two weeks the pair has managed to grow by a bit less than 6 figures and this is a very good result. For the most part, the reason for the pound's rally is in lower expectations regarding the QE extension. Furthermore, the positive effect has been produced by a series of positive news releases from the country and the spreading weakness of the dollar. Anyway, be careful, there is a strong feeling that the Bank of England thinks over new steps to stimulate the economy. And the majority of such methods usually tells badly on the positions of the currency.
AUD/USD
The aussie is now very close to the top of the trading range of the last weeks, 0.90-0.93, due to weakness of the US currency. Anyway, tomorrow the pair can make a decisive jerk in one or the other direction on the release of inflation statistics. These statistics come out only once a quarter, so they attract much attention, especially now when the spring decline of the Australian currency may affect the prices.
Gold
Revision of the US monetary policy prospects is reflected in Forex, yet stock exchanges as well as the gold market give an even clearer picture of this. Gold is taking off and CFTC is reporting increase in bullish stakes in the recent weeks. At present Gold is trading at $1336 per ounce, which is approximately by $160 more expensive than at the lowest point of the decline a month ago.
