EUR/USD: The European currency rose against the US dollar on Thursday due to jump in German inflation and general US dollar weakness. Germany’s annual consumer price inflation accelerated by more than expected in July and showed 3.1% growth in July. The US published the preliminary estimate of its Gross Domestic Product in the second quarter, which showed the economy grew at an annualized pace of 6.5%, better than the previous value, but worse than expected. Also, the Initial Jobless Claims for the last week showed a rise against the previous value. Today we are expecting important figures about the Gross Domestic Product and Consumer Price Index in the Eurozone. The local resistance level can be seen at 1.1900. The breakout up can trigger growth towards 1.1955.
USD/JPY: The US dollar fell against the Japanese yen yesterday following the disappointing US data releases. Meanwhile, the 10-year US Treasury bond yield rose nearly 3% on the back of risk flows, keeping the pair’s downside limited for the time being. Japan published its Unemployment Rate and May Retail Trade data at night causing the US dollar to correct slightly. The local support level can be seen at 109.30. A breakout below could take the pair towards 108.85.
XAU/USD: Gold jumped more than 1% on Thursday and showed the heaviest daily gain in 11 weeks. It happened after Fed Chair Jerome Powell said a day earlier the central bank wasn’t ready to raise US interest rates because it was still focused on buying assets to support an economy recovering from the coronavirus pandemic. Rising monetary policy uncertainty, inflation and increasing risk of equity market volatility should favor demand for safe-haven assets. The local resistance level can be seen at $1835. The breakout up can trigger growth towards $1853.