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Review of fundamental events for key economies of the world USA, Eurozone, Great Britain, Japan, Australia, Oil 03.09.20

3 September 2020, 07:58

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United States of America

The American currency is strengthening against its main competitors - the pound, the yen and the Japanese yen.

The focus of US investors is on yesterday's August US employment data from ADP. The indicator grew from 212 to 428 thousand, but seriously fell short of the forecast of 950 thousand. The service sector expanded the most, with 389,000 new jobs created. The day before, Treasury Secretary Stephen Mnuchin rejected a cutback economic stimulus plan from the Democratic Party in the amount of $ 2.2 trillion. Representative spokeswoman Nancy Pelosi said there are still serious differences of opinion between the parties over the support package for the US economy.

Eurozone

The European currency is weakening in relation to its main competitors - the euro, the pound and the US dollar.

The euro is under pressure from the weak data on German retail sales for July. On a monthly basis, their volume, instead of the expected growth of 0.5%, decreased by 0.9%, and on an annualized basis - increased by 4.2%, which is less than the June growth of 6.7%. The decline in German retail sales has occurred for the second month in a row and may continue this trend in the event of a second wave of the coronavirus pandemic in European countries.

Great Britain

The British currency is weakening against the US dollar, but is strengthening against the euro and yen.

In the absence of significant economic releases, government actions remain the focus of British investors. Yesterday Boris Johnson reiterated that he wants to return the British to work, and therefore the job preservation program is likely not to be extended and it will end in October.

Japan

The Japanese currency is weakening against the US dollar and pound, but is strengthening against the euro.

In the absence of significant economic releases, the movement of the yen is technical in nature. Bank of Japan Deputy Governor Masazumi Wakatabe said the regulator must continue to adhere to its 2.0% inflation target and respond to any price increases or decreases. He also noted that the Bank of Japan needs to further consider what kind of monetary policy should be pursued during the pandemic, while taking into account the actions of other central banks.

Australia

The Australian currency is weakening against the pound, yen and the US dollar, but has mixed performance against the euro.

The focus of Australian investors is the publication of data on Australian GDP for the second quarter of this year, which turned out to be negative. The Australian economy contracted immediately by 7.0% instead of the expected 6.0% on a quarterly basis and by 6.3% instead of the 5.3% expected on an annualized basis. These are the worst indicators in the entire history of observations. Australian Treasurer Josh Friedenberg has announced that the record-breaking 28-year period for the Australian economy has officially come to an end. Nevertheless, the official noted that hopes for a way out of the sad situation remain.

Oil

Oil prices are moderately correcting downward. The instrument is influenced by opposite factors. Its growth is facilitated by the decline in US oil reserves by 6.360 million barrels, according to API data. On the other hand, the positive dynamics is held back by the increase in the supply of "black gold" by the OPEC countries, which began in August. According to the latest data, the UAE exceeded the oil production quota last month by 100 thousand barrels per day, which was caused by the growth of energy consumption in the country. UAE Energy Minister Suheil al-Mazroui promised that the country would cut supplies of all grades of oil in October to offset overproduction. During the day, investors await the publication of the weekly report on the number of US oil reserves from the EIA. The figure is expected to decline by 1.887 million barrels, which may support quotes.