08.06.2015 - The Japanese economy grew by 1.0% in Q1
Currency trading and the euro. The price of euro showed a strong decline due to rising US dollar, which was caused by the publication of positive statistics on the US labor market. So, despite the rise in the unemployment rate by 0.1% to 5.5%, investors have been cheered by the fact of increasing the number of jobs in the country by 280 thousand against the expected 222 thousand. At the same time, the average salary in the private sector rose by 0.3%, which is 0.1% better than the expectations of experts. The focus of investors will continue the negotiations between Greece and creditors, which can lead to sharp price movements. The dynamics of trading will be affected by the news on the trade balance and industrial production in Germany (06:00 GMT) and the index of investor confidence in the Eurozone (08:30 GMT), which are likely to support the euro quotations. Our medium-term outlook remains negative.
Currency trading and the British pound. The price of the British pound after falling sharply on Friday amid a stronger US dollar has stabilized and is now consolidating above 1.52. The current negative trend is caused by the weak data on GDP growth in the UK, the strengthening dollar and weakening euro. Today, volatility is reduced due to the absence of important macroeconomic data. Our medium-term view of the British pound remains negative and we expect the negative dynamics of prices in the near future.
Currency trading and the Japanese yen. The price of the Japanese yen fell sharply on Friday amid rising US dollar after the release of strong statistics on the US labor market. Today we see the strengthening of the yen, which is associated with the release of the report on GDP growth in Q1. So, the third largest economy in the world grew by 1.0% in the first quarter against the previous estimate of 0.6% growth. GDP continued to recover after last year's fall due to strong exports, which rose by 9.9% and an increase in household spending and inventories. In the near future it might be a slight correction, but our medium-term view remains negative.
Currency trading and the Australian dollar. The price of the Australian dollar has stabilized around a local minimum after strong downward movement on Friday, caused by the strengthening of the US currency. Today quotes of the Australian dollar were supported by the strong statistics on China's trade surplus, which is the largest consumer of Australian exports. Thus, the surplus totaled 59.49 billion dollars, compared to the forecast 45.1 billion and 34.13 billion in April. Tomorrow will be published statistics on the index of business sentiment in Australia. Today we expect decreased activity of investors and maintain the medium-term negative outlook.
Currency trading and the British pound. The price of the New Zealand dollar continues to fall in a steady downtrend and now stabilized after a sharp fall on Friday. Support for the national currency of the country has become strong data on China's trade surplus, which is the main consumer of New Zealand exports. Price continues to be under pressure of expectations of easing monetary policy in the country and lower prices for dairy products. We expect a drop in prices in the near future.