04.03.2016 - The employment data in the US will lead to strong movements on the market
Currency trading and the euro. The price of euro yesterday showed growth against the background of the publication of weak service PMI statistics in the US, which fell to 49.7 in February against the forecast of 49.8. It is worth noting that a similar rate in the Eurozone rose by 0.3 to 53.3. Today will be published important statistics on the labor market in the US (13:30 GMT), which can lead to strong movements on the market. In addition, we should pay attention to Eurozone’s retail PMI (09:10 GMT), and the US trade balance (13:30 GMT). Our medium-term outlook for the euro remains negative.
Currency trading and the British pound. The price of the British pound continued to rise against the weakening US dollar, as well as fixing positions after a strong decline of the British pound earlier. Growth continued yesterday, despite the worsening statistics on the country's service PMI to 52.7, against the forecast of 55.1. Today, the focus will be on the labor market statistics in the US and we expect strong price movement. Our medium-term outlook remains negative.
Currency trading and the Japanese yen. Japanese yen price has strengthened against the US dollar after have been published weak data on the service PMI in America. Today was released statistics on the average wage in Japan, which grew by 0.4% in January that is 2 times better than expected. On Monday will be held on the speech of the Bank of Japan Haruhiko Kuroda, and today the strong price movements are possible after the release of US labor market data. We expect the price decline of the yen in the medium term.
Currency trading and the Australian dollar. The price of the Australian dollar continued to rise after the publication of statistics on retail sales in the country, which increased by 0.3%, vs. expected 0.4% in January. It is worth noting that earlier in Australia came out stronger statistics on GDP and trade balance. We expect a strong move today and maintain the medium-term negative outlook, despite the possible continuation of the positive momentum in the near future.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar continued to rise against the weakening US dollar and the support of the Australian currency. Investors are waiting for the decision of the Reserve Bank of New Zealand next week. In the case of lowering interest rates or statements about their decrease in the near future, the price drop of the New Zealand currency will resume. Today we expect a strong price movement after the publication of US labor market data. The medium-term pessimistic outlook remains unchanged.