07.10.2016 - The British pound fell sharply during the Asian session
Currency trading and the euro. The price of euro shows a decline against the US dollar due to the anticipation of the publication of an important report on the labor market in the US (12:30 GMT). In case of the publication of strong statistics, the probability of the Fed raising interest rates will rise, which will lead to an increase in the dollar and the decline of the euro. It should also be noted the negative impact of unexpectedly strong subsidence of the British pound. The trading can significantly affect the data on industrial production in Germany (06:00 GMT). It is worth noting that on Monday in the US is a holiday. Our medium-term outlook remains negative.
Currency trading and the British pound. The price of the British pound showed a sharp decline amid low trading volumes during the Asian session. In addition, while a heavy fall quotations have reached the target marks 1.2600 and 1.2200, as well as approached to the psychologically important level of 1.2000, the stop order have intensified the negative momentum. Today will be published important data on industrial production and trade balance in the UK (08:30 GMT), but investors will probably fix the positions before the weekend and we will see an upward correction. It is worth noting that the dynamics of the pound will continue to be under the pressure of negative expectations of the country's exit from the EU which intensified after the appeal of the French president to conduct tough negotiations on the country's exit from the EU. Our medium-term outlook remains negative and we will see a strong movements in the coming days.
Currency trading and the Japanese yen. The price of the Japanese yen significantly strengthened after the recent fall. The reason for the growth was the increased interest in defensive assets against the backdrop of the collapse of the British pound. At the same time investors fixed positions after recent gains, as well as before the long weekend due to the holidays in the US and Japan. Today we expect a strong price movement after in the US will publish a report on the labor market. We maintain our medium-term negative outlook on the yen against the US dollar on a background of soft monetary policy in Japan, compared with an expected rise of the Fed’s interest rates.
Currency trading and the Australian dollar. The price of the Australian dollar continues to fall against the background of the gradual growth of US dollar as well as the continuation of the negative dynamics of the gold, which is one of the main export products in the country. On Tuesday will be published forecasts of the government on the economy and fiscal policy. Investors are waiting for important news from the US that will lead to increased volatility. Our medium-term outlook remains negative and the probability of falling of quotations in the near future has increased significantly.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar continues to decline gradually on the background of the negative dynamics in the dairy products market, which has traditionally had a strong influence on the local currency, as well as through the strengthening of the US dollar in the hope of monetary tightening in December this year. Low inflation on New Zealand makes it possible to further reduce interest rates in the country. Our medium-term outlook is negative and we with a high probability expect a decline of the New Zealand dollar in the coming months.