[MikhailLF]

EUR/USD

Today, during the Asian session, the EUR/USD pair is trading in a downward direction, returning to decline after a corrective growth the day before. The strengthening of the euro was mainly due to technical factors, as the single currency remains strongly oversold and is trading near three-year lows. The macroeconomic background, however, did not contribute to the growth of the instrument. Thus, EU Construction Output for December fell by 3.7% YoY after rising by 1.4% YoY in the previous month. Analysts had expected an increase of 1.4% YoY. In monthly terms, the production fell by 3.1% MoM after a slight increase of 0.74% for November. During the day, European investors expect the publication of information on the dynamics of producer prices for January in Germany. In addition, the ECB will publish the Account of Monetary Policy Meeting.

GBP/USD

Today, during the Asian session, the GBP/USD pair is trading near zero, consolidating near local highs since February 11, which were achieved due to a steady GBP decline the day before. The British currency almost completely ignored the strong national statistics on the dynamics of consumer inflation. Instead, investors focused on the prospects for EU-UK negotiations and discussed upcoming fiscal changes and increased government spending. The consumer price index for January sharply accelerated from +1.3% YoY to +1.8% YoY, which was better than market expectations of +1.5% YoY. In monthly terms, however, consumer inflation decreased by 0.3% MoM after December's zero dynamics. Analysts predicted a 0.4% YoY decrease in the index. On Thursday, traders are focused on the UK retail sales statistics for January, as well as the publication of the CBI Industrial Trends Orders for February.

NZD/USD

Today, during the Asian session, the NZD/USD pair is significantly reduced, renewing local lows since November 13. Now, NZD has lost about 0.38% and is preparing to test the level of 0.6350 for a breakdown. The currency is falling amid the publication of optimistic macroeconomic American statistics. Yesterday, traders were pleased by a confident increase in the producer price index and an improvement in the housing market. Building Permits for January increased by 9.2% MoM after a decrease of 3.7% MoM in the previous month. Analysts had expected a decrease of 0.1% MoM. In addition, investors are still wary of a slowdown in the global economy due to continued threats of the spread of coronavirus and a weakening Chinese economy. However, the market appreciated the efforts made by Beijing to contain the epidemic. On Thursday, it became known that the Central Bank of China decided to reduce the interest rate by 10 basis points to 4.05%.

USD/JPY

Today, during the Asian session, the USD/JPY pair shows flat dynamics, consolidating near new record highs, renewed the day before, when the yen showed its strongest decline in 6 months. JPY is under pressure by a poor national macroeconomic statistics, which may indicate the onset of a recession in the country. Data released on Monday reflected a sharp decline in Japan's Q4 2019 GDP by 6.3% YoY after an increase of 1.8% YoY in the previous month. In quarterly terms, GDP lost 1.6% QoQ after a slight increase of 0.4% QoQ earlier.

XAU/USD

Today, during the Asian session, the price of gold is slightly reduced, retreating from local highs, updated due to yesterday’s moderate growth of the instrument. Although the market positively assesses China’s efforts to contain the spread of coronavirus, concerns about negative economic consequences remain, which provides support for shelter assets. Also, uncertain prospects around a possible reduction in the interest rate of the US Federal Reserve positively affect the quotes. The minutes of the Fed meeting published yesterday reflected a certain split in its administration, however, the regulator continues to believe in a strong labor market, and therefore the risks of lowering the rate in the foreseeable future remain insignificant.