EUR/USD
The European currency shows ambiguous dynamics of trading against the US dollar during today's Asian session, consolidating near the level of 1.1150. The day before, EUR/USD showed a steady decline, as a result of which it updated record lows from June 2, 2020. The reason for the strengthening of "bearish" sentiment yesterday was the strong data on the dynamics of US GDP for Q4 2021. The US economy expanded 6.9% in Q4 after expanding 2.3% in the prior period. Analysts had expected growth of only 5.5%. The published statistics correlate with the words of the Chair of the US Federal Reserve, Jerome Powell, who commented on the prospects for the regulator's monetary policy on Wednesday. The official noted the achievements of the American economy and said that board members are considering a rate hike as early as March. Moreover, under certain circumstances, the regulator can adjust the rate by 50 basis points at once. Today, investors will be focused on statistics on the dynamics of German GDP for Q4 2021. Also during the day there will be a report on business sentiment in the euro area for January.
GBP/USD
The British pound is trading with upward dynamics in tandem with the US currency, correcting after a sharp decline the day before, as a result of which the instrument updated local lows from December 23. The pound is again testing the level of 1.3400 for a breakout, relying mainly on technical factors. The reason for the strengthening of the growth of the US dollar yesterday was the strong data on GDP dynamics for Q4 2021, which strengthened the market's belief that the US Federal Reserve will raise rates during the March meeting. At the same time, other statistics from the US, released on Thursday, turned out to be worse than expected. Durable Goods Orders fell 0.9% in December after rising 3.2% in November. Analysts expected a decrease of only 0.5%. Nondefense Capital Goods Orders excluding Aircraft showed zero dynamics in December, while investors expected growth of 0.4%.
AUD/USD
The Australian dollar is showing mixed trading dynamics against the US currency during the Asian session, holding near the local lows of December 6 and getting ready to test the psychological support at 0.7000. The US dollar received another impetus to growth the day before after the publication of strong data on GDP dynamics for Q4 2021. The data pointed to an increase of 6.9% in annual terms, which significantly exceeded the already optimistic forecasts of 5.5%. Today, investors focus on a block of data from the US on the dynamics of Personal Income and Spending. Market forecasts suggest a further increase in income, while spending may show a marked decline. Insignificant support for the Australian currency at the end of the week is provided by statistics from Australia on producer inflation. The Producer Price Index for Q4 2021 increased by 1.3% after rising by 1.1% in the previous period. Market forecasts assumed a sharp slowdown in the indicator to 0.3%. In annual terms, the growth of the index accelerated from 2.9% to 3.7%.
USD/JPY
The US dollar shows weak growth against the Japanese yen in Asian trading, consolidating near 115.50 and local highs from January 11. Markets reacted quite positively to the publication of optimistic macroeconomic statistics from the US the day before, which strengthened the belief that the US Federal Reserve will raise rates faster than originally expected. In particular, the Chair of the regulator, Jerome Powell, commenting on the minutes of the department's meeting on Wednesday, noted that he does not rule out a rate hike in March by 50 basis points at once. The development of "bullish" sentiment on the instrument today is also facilitated by uncertain macroeconomic statistics from Japan. Tokyo Consumer Price Index region in January slowed down from 0.8% to 0.5%, which was slightly worse than market forecasts at 0.6%. Tokyo Consumer Price Index excluding Fresh Food fell from 0.5% to 0.2% over the same period.
XAU/USD
Gold prices are consolidating near 1800.00, stabilizing after a sharp decline the day before. The dollar strengthened its rally after the release of encouraging data on the dynamics of US GDP for Q4 2021 the day before, which increased expectations of an imminent tightening of monetary policy by the US Federal Reserve. Statistics pointed to a significant growth of the US economy at 6.9% after growth of 2.3% in the previous month. The real data turned out to be much better than forecasts, which suggested an increase in the indicator only up to 5.5%. At the end of the week, gold has certain chances to win back some of its positions, since the macroeconomic background from the US today does not promise any additional support factors.
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