The United States of America

The US currency is weakening against the euro and the pound, but has ambiguous dynamics paired with the yen.

In positive data released today, construction permits issued in May stood at 1.496M, higher than both the forecast of 1.491M and the previous figure of 1.417M, while the volume of permits issued increased by 5.6%, and orders for durable goods – by 1.7%. Statistics signal a recovery in the construction market and consumer confidence in the near future, even despite the impending downturn in the US economy. In this regard, it is worth noting the latest forecasts of HSBC bank analysts, who believe that a recession in the first world economy will begin in the fourth quarter.

Eurozone

The European currency is strengthening today against its main competitors – the USD, the pound and the yen.

In the focus of investors' attention are the latest comments of the head of the European Central Bank (ECB), Christine Lagarde. Today she said that inflation in the eurozone is still too significant, and it is too early for the regulator to declare victory over consumer price growth. The official also noted that the peak of the interest rate increase has not yet been reached. These statements made experts confident that the ECB will continue to tighten monetary policy in the near future. It is worth noting that other members of the regulator, for example, the Governor of the Bank of Latvia, Martins Kazaks, share this opinion. He said that the European regulator is likely to continue to increase the cost of borrowing, even despite the slowdown in the economy.

The United Kingdom

The British currency is weakening today against the euro, but is strengthening against the USD and the yen.

In the absence of significant economic releases, the movement of the pound is driven by external factors. It is worth noting the recent comments of the Bank of England official Swati Dhingra, who said that a sharp drop in the cost of goods supplied by manufacturers is a positive sign that the consumer price index in the UK should fall sharply in the future. Nevertheless, most experts believe that in the near future the Bank of England will continue to tighten monetary policy. According to a survey of leading economists conducted by Reuters, the regulator may raise the interest rate to 5.50% at the next two meetings.

Japan

The yen is weakening against the euro and the pound today, but has ambiguous dynamics paired with the USD.

In the absence of significant economic releases, the movement of the Japanese currency is due to external factors. It is worth noting the recent comments of the Minister of Finance of Japan, Shunichi Suzuki, who today confirmed the possibility of taking urgent measures by the government if the depreciation of the yen becomes excessive. Earlier, Deputy Minister of Finance for International Affairs Masato Kanda had already spoken in a similar way. Officials did not specify what measures will be taken to support the yen, but experts believe it can be regular foreign exchange interventions, which the government has previously used to stabilize the exchange rate.

Australia

The Australian currency is weakening today against the euro, but is strengthening against the USD, the pound and the yen.

The movement of quotations is generally due to external factors. In particular, the positions were strengthened by the statements of Chinese officials about taking measures to stimulate domestic demand, which will allow in the future to bring economic growth to 4.5% this year. These announcements were reassuring to investors, as the recovery of the Chinese economy could significantly boost demand for Australian goods. We also note that on Wednesday, market participants expect the publication of May data on inflation in Australia: price growth on an annualized basis may slow down from 6.8% to 6.1%, but still remain well above the target range of the Reserve Bank of Australia (RBA) of 2.0-3.0%.

Oil

Oil prices today have ambiguous dynamics: the morning fall has been replaced by attempts to grow and restore part of the lost positions.

Currently, oil quotes are supported by investors' hopes for a rise in gasoline consumption during the US Independence Day holiday weekend: 43.0M citizens will make long-distance trips in July, which is 4.0% more than in 2019, before the start of the coronavirus pandemic. During the day, investors also expect the publication of a weekly report on the amount of oil reserves in the USA from the American Petroleum Institute (API). The last time the indicator fell by 1.246M barrels. Continuation of this trend may provide additional support for quotes