May 16: Asian session
EUR/USD is trading in the negative territory below $1.2900 before a CPI release may show inflation in the euro zone was the slowest in three years, what would confirm the expectations of the ECB rate cut. Yesterday the single currency renewed a 6-week low as euro zone’s GDP release confirmed the economy stays in recession for sixth quarters.
USD/JPY is consolidating above 102.00. Yen strengthened a bit after Japanese preliminary Q2 GDP expanded by 0.9% (forecast: 0.7%; prev.: 0.0%).
AUD/USD is trading below $0.9900, close to 11-month low after signs of slowdown in the global economy weighed on commodity prices dimming the outlook for Australian exports.
NZD/USD reached $0.8270, but is now trading around $0.8245. New Zealand’s budget didn’t bring any surprises. According to Moody’s, the nation’s ‘budget trajectory’ is supportive of AAA rating.
GBP/USD is consolidating around $1.5230 following the yesterday’s dip to $1.5170. USD/CAD hovers around the 1.0200 mark. Loonie recovered a bit on the weak US data, released yesterday. USD/CHF spiked up to 0.9747 yesterday and is currently trading around 0.9660.