09.06.2015 - The US dollar corrected after a strong growth
Currency trading and the euro. The price of euro showed steady growth yesterday amid rising yields of German bonds that approached to the maximum of 9 months. At the same time we saw a fixation of position after strong growth of the US dollar last week. On the market appeared the news regarding the negative attitude of US officials to a strong dollar. Today, it is worth paying attention to the preliminary statistics for the euro area GDP growth in the first quarter (09:00 GMT), the index of small business optimism in the US (13:00 GMT), wholesale inventories and the number of open vacancies in the US (14:00 GMT ). Our medium-term outlook for the euro remains negative and we recommend waiting for the moment to open new short positions.
Currency trading and the British pound. The price of the British pound showed growth against the backdrop of the correction, as well as due to the fall in the price of the US dollar, which was caused by the news that the White House consider strong dollar as a problem for the US economy. Today, a strong influence on the course of trading will have data on the UK trade balance (8:30 GMT). The likely deterioration will lead to a weakening of the British pound. Our medium-term view on the pound remains negative.
Currency trading and the Japanese yen. The price of the Japanese yen strengthened yesterday after reaching 13-year lows. Positive was associated with the release of strong statistics on GDP growth in the 1st quarter, which totaled 1.0%, against a previous estimate of 0.6% growth. The weakening of the US dollar also supported the Japanese currency. The consumer confidence index in Japan was 41.4, which is 0.5 worse than analysts' forecasts. Today is also necessary to pay attention to the statistics on orders for engineering equipment. We maintain a medium-term negative outlook on the yen.
Currency trading and the Australian dollar. The price of the Australian dollar increased and was unable to continue to fall after reaching a local minimum. The weakening of the US dollar and the positive statistics of the index of business sentiment in Australia, which rose in May to 7 that is 4 more than forecasts, supported growth. In China was released the report on consumer inflation, which dropped to 1.2% vs. expected 1.3% and the previous figure of 1.5%. This fact gives the country's central bank more room to ease monetary policy. Our medium-term outlook for the Australian dollar remains negative, but growth may continue.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar showed growth after the Australian currency, as well as due to the strong correction of the US dollar. The price of the New Zealand dollar came closer to the psychologically important level of 0.70 and the growth potential reduced. Investors will not rush with opening new positions ahead of tomorrow's statement of the Reserve Bank of New Zealand. Our outlook remains negative, but we may see a correction in the near future.