EUR/USD
The European currency shows a slight decrease against the US dollar during the Asian session, correcting after the "bullish" start of the week, which led to the renewal of local highs for the instrument from April 25. Quotes are still supported by the moderate weakness of the dollar, which reacts negatively to the publication of mixed macroeconomic statistics. In addition, investors positively assessed the rhetoric of the President of the European Central Bank (ECB) Christine Lagarde, who actually announced the imminent completion of the quantitative easing program and a possible increase in interest rates by 50 basis points in July. Meanwhile, macroeconomic statistics from the euro area, released the day before, turned out to be negative. Markit Services PMI fell from 57.7 to 56.3 points, which turned out to be worse than market expectations for a reduction to 57.5 points. Composite PMI fell from 55.8 to 54.9 points, which also turned out to be weaker than market forecasts at the level of 55.3 points. Today, investors are focused on statistics from Germany on updated estimates of GDP for Q1 2022. Also during the day, ECB representatives are expected to speak, including the President of the regulator, Christine Lagarde.
GBP/USD
The British pound is traded with mixed dynamics against the US currency during the morning session, holding near 1.2530. The day before, the pound showed a corrective decline, retreating from the local highs of May 5, but towards the end of the trading session on Tuesday, the "bulls" were able to partially win back the lost positions. The reason for the resumption of active sales on the instrument was frankly weak macroeconomic statistics from the UK. Markit Manufacturing PMI in May fell from 55.8 to 54.6 points, while analysts expected a decline to only 55.1 points. Services PMI over the same period fell from 58.9 to 51.8 points, which turned out to be significantly worse than analysts' forecasts at the level of 57.3 points. Later, with the appearance of weak data from the US, the instrument managed to partially bounce back. Investors reacted negatively to a sharp decline in the dynamics of New Home Sales in April by 16.6% from 763 thousand to 591 thousand, while forecasts suggested a slowdown of only 3.4% to 750 thousand.
AUD/USD
The Australian dollar shows moderate growth against the US dollar during Asian trading, once again trying to consolidate above 0.7100. AUD/USD resumed growth after a corrective decline the day before, which, however, did not develop. Quotes of the instrument came under pressure from disappointing macroeconomic statistics on business activity. S&P Global Manufacturing PMI fell from 58.8 to 55.3 points in May compared to preliminary market estimates at 57.8 points. The Commonwealth Bank Services PMI fell from 56.6 to 53 points over the same period, compared to forecasts of 52.2 points. With the opening of the US session, the "bulls" began to win back the positions lost in the first half of the day after the release of statistics on business activity and New Home Sales in the US. During the Asian session, the activity of "bulls" is constrained by the emergence of uncertain data from Australia. Construction Work Done in Q1 2022 decreased by 0.9% after an increase of 0.6% over the previous period, although analysts expected an acceleration of dynamics to 1.0%.
USD/JPY
The US dollar shows a slight increase against the Japanese yen during the Asian session, again testing the level of 127.00 for a breakout. The day before, the instrument showed a rather active decline and updated the local lows of April 18. The correctional dynamics were facilitated by the weak macroeconomic statistics from the US, which increased fears about the slowdown in the US economy. Markit Services PMI in May fell from 55.6 to 53.5 points, which turned out to be worse than market expectations for a decline to 55.2 points. S&P Global Composite PMI for the same period fell from 56 to 53.8 points, while analysts' forecasts suggested a decline to 55.5 points. At the same time, the day before, the Chair of the US Federal Reserve, Jerome Powell, made a speech, which reaffirmed the regulator's determination to raise rates until the inflation rate returns to the target levels of 2%. According to Powell, the Fed is analyzing the risks associated with this process, but so far the weak increase in the Unemployment Rate does not look too alarming.
XAU/USD
Gold prices are consolidating during the morning session near new local highs, updated the day before. On Tuesday, XAU/USD updated local highs of May 9, which was a continuation of the relatively stable uptrend of May 18. The instrument was supported by rather weak macroeconomic publications from the USA. In particular, investors reacted negatively to the decline in business activity and a sharp slowdown in New Home Sales in April (-16.6% after the previous -10.5%). At the same time, more active growth of the instrument is hampered by expectations of further tightening of the US Federal Reserve's monetary policy, which was again signaled yesterday in the course of the speech by the Chair of the American regulator, Jerome Powell. Today, in addition to the statistics on the dynamics of Durable Goods Orders, the focus will be on the minutes of the meeting of the US Federal Reserve's Open Market Committee (FOMC), where investors hope to see evidence of further tightening of monetary policy at the same or higher pace.
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