EUR/USD

The EUR/USD pair shows mixed trading dynamics, consolidating near 1.0765. The activity on the market remains restrained, as investors prefer to wait for new drivers for growth. Among other things, the publication of April statistics on business activity in the S&P Services PMI is expected, as well as the March data on producer inflation in the eurozone. It is assumed that German Services PMI will remain at the level of 53.3 points, and in the eurozone it may remain at 52.9 points. The Producer Price Index in March may decrease by 0.7% after -1.0% in the previous month, and in annual terms, the indicator will probably be at -8.3%. In addition, investors evaluate the April report on the US labor market, presented on Friday, according to which the national economy created only 175.0 thousand new jobs outside the agricultural sector after 315.0 thousand in the previous month, while analysts counted on 243.0 thousand, the Average Hourly Earnings slowed down from 0.3% to 0.2% in monthly terms and from 4.1% to 3.9% in annual terms, and the Unemployment Rate was adjusted from 3.8% to 3.9%. An additional negative factor was a sharp decrease in the Services PMI from the Institute of Supply Management (ISM) from 51.4 points to 49.4 points with the expectations at 52.0 points.

GBP/USD

The GBP/USD pair demonstrates flat trading, holding near the level of 1.2545. Today, investors will continue to evaluate the April data on the US labor market, published on Friday, according to which the Nonfarm Payrolls has sharply decreased from 315.0 thousand to 175.0 thousand, which turned out to be significantly lower than the expected 243.0 thousand, Average Hourly Earnings slowed down from 0.3% to 0.2% in monthly terms and from 4.1% to 3.9% in annual terms, and the Unemployment Rate was adjusted from 3.8% to 3.9%. Despite some cooling of the labor market, it remains quite durable, given the limiting nature of the US Fed's monetary policy, and investors adjust the estimated periods of reducing interest rates against the background of high inflation in the country. Minor support on Friday was provided by the Services PMI from S&P Global: in April, the index rose from 54.9 points to 55.0 points with neutral forecasts of analysts. On Thursday at 13:00 (GMT 2) a meeting of the Bank of England on the interest rate will be held. Analysts do not expect any changes in the vector of the monetary policy of the regulator; however, they count on additional comments and forecasts for inflation. On Friday, May 10, in the UK, statistics on Gross Domestic Product (GDP) for the first quarter will enter the market: forecasts involve the growth of the indicator in quarterly terms by 0.4% after a decrease by 0.3% in the previous period.

AUD/USD

The AUD/USD pair shows multidirectional trading dynamics, holding on in the area of 0.6617 and local highs of March 8, updated the day before. The pressure on the American currency last Friday was provided by April statistics on the US labor market. Thus, the Nonfarm Payrolls decreased from 315.0 thousand to 175.0 thousand with expectations of 243.0 thousand, the Average Hourly Earnings slowed down from 0.3% to 0.2% in monthly terms and from 4.1% to 3.9% in annual terms, and the Unemployment Rate rose from 3.8% to 3.9%. Another negative factor was a sharp decrease in the US Services PMI from the Institute of Supply Management (ISM) in April from 51.4 points to 49.4 points, while analysts were counting on growth of up to 52.0 points. Meanwhile, a similar indicator in Australia from Commonwealth Bank dropped from 54.2 points to 53.6 points with neutral forecasts. Business activity is restored, although at a slower pace than experts expected, maintaining the risks of high prices in the country and reducing the likelihood of adjusting the monetary policy of the Reserve Bank of Australia (RBA) in the near future. Today, investors are focused on Australian data on inflation from TD Securities: in April, the indicator was adjusted from 3.8% to 3.7% in annual terms, and in monthly terms it added 0.1%. Tomorrow at 6:30 (GMT 2) the results of the RBA meeting will be published: analysts do not imply any changes in the vector of the monetary policy of the regulator; however, updated forecasts and assessment will still be important.

USD/JPY

The USD/JPY pair demonstrates a rather active growth, adjusting after a rather active decrease last week, which led to updating local lows of April 10. The instrument is testing the level of 154.00 for a breakout, while investors expect new drivers on the market. The focus of the traders is currently on April report on the US labor market, which has somewhat weakened the position of the American currency. The US economy has created only 175.0 thousand new jobs outside the agricultural sector, which is significantly lower than the previous 315.0 thousand, while analysts expected 243.0 thousand, and the Average Hourly Earnings slowed down from 4.1% to 3.9% in annual terms and from 0.3% to 0.2% in monthly terms. The main factor in the growth of the yen rate last week remained, as analysts suggest, intervention by the Bank of Japan. At the same time, there were no official evidence or comments from the regulator, and traders make only indirect assumptions. One way or another, statistics on the account of current operations of the Japanese regulator shows that monetary authorities could spend almost 60.0 billion dollars on foreign exchange interventions.

XAU/USD

The XAU/USD pair shows mixed dynamics and is held near the support level of 2300.00. The activity on the market remains restrained, as investors evaluate the April data on the US labor market published at the end of last week. The national economy created only 175.0 thousand new jobs outside the agricultural sector, which is significantly lower than 315.0 thousand demonstrated in March, while analysts expected 243.0 thousand. The Average Hourly Earnings adjusted from 0.3% to 0.2% in monthly terms and from 4.1% to 3.9% in annual terms, and the Unemployment Rate rose from 3.8% to 3.9%. At the same time, despite the slowdown in the American economy and cooling the labor market, the US Federal Reserve probably will continue to maintain a wait-and-see position. At the moment, analysts do not expect a reduction in the interest rate until the November meeting of the regulator, although they admit that much will depend on macroeconomic statistics. On Friday, May 10, May data on the Consumer Confidence Index from the University of Michigan, as well as a monthly report on the state of the US budget for April, will enter the market. Forecasts suggest that the budget will return to a surplus zone of 265.5 billion dollars after a deficit of 236.0 billion dollars in March.