EUR/usd
The US dollar suffered because of the poor statistics. First of all, Manufacturing PMI for May was significantly revised up. In Italy the index made 47.3 against 45.5 a month ago. In France it was raised from the same 45.5 to 46.4. In Germany – from 49.0 to 49.4. Manufacturing PMI for the euro zone totaled 48.3 against the first estimate of 47.8. Though the index is still below 50, reflecting a decline, it is possible to notice the general upward trend, lasting for about a year already. By contrast with it the market was surprised by a sharp plunge of the similar US index by ISM. Manufacturing PMI suddenly dropped to 49.0 against 50.7 a month ago and the expected minimal decline to 50.6. Production, new orders, deliveries and prices have switched from growth to decline. The employment component is still demonstrating minimal growth (50.1). It is very important in anticipation of Friday's payrolls. The released statistics incurred significant losses to USD. eurusd jumped to 1.31, though shortly before it was quoted at just 1.2960. After a certain consolidation during the Asian session, the euro seems to be again ready to attack. Bulls have felt firm ground under their feet and are trying to come off the 200-day MA. The US dollar, now being more sensitive to economic performance, can be influenced by the trade balance statistics today.
GBP/USD
The British statistics proved to be even better than the European ones. Manufacturing PMI exceeded expectations – 51.3 against the forecasted 50.3. Besides, the April statistics were also revised, which brought the index to the zone of growth. As a result, in May business activity has been the highest since March 2012. Due to this and also to disappointment with the ISM Manufacturing PMI the cable set the daily high at 1.5375. At present trading is held around 1.53, which is close to the levels seen three weeks ago.
USD/JPY
In a rush usdjpy tumbled below the support line we indicated. Having broken below 100 on the US news, the pair quickly reached 98.80, where it found buyers. Since then it's been gradually recovering. Now trading is again held above 100 (100.30). It's difficult to be a sure buyer of the yen, when the policy of the BOJ led to a 31.6% increase in the money base in May. It is reported that the cost of living in Japan is growing and this hasn't been seen for many years.
AUD/USD
The Australian CB kept the base interest rate unchanged at the record low of 2.75%. The statement pointed out that the monetary policy will be possibly softened. Besides, the commentary noted that the Australian dollar rate remains high. As we see, the RBA also joined the camp of the CBs, which are actively advocating a lower rate of their domestic currencies. Yet here officials still confine themselves to restrained comments and traditional measures of the monetary policy.
