09.10.2015 - The dollar has weakened after the publication of minutes of the Fed meeting
Currency trading and the euro. The price of euro yesterday showed a rise in volatility after the publication of minutes of the previous meeting of the Federal Reserve, at which members of the FOMC noted the strong indicators of the labor market, but have decided not to raise interest rates because of the need to assess the impact of slowing of global growth on the US economy and inflation in the country. It is worth noting that the number of initial unemployment claims in the US fell by 13 thousand to 263 thousand. Today quotes probably will continue to consolidate around current levels. A slight effect on the course of trading will have news on industrial production in France (6:45 GMT) and Italy (08:00 GMT). In addition, we should pay attention to statistics on wholesale inventories in the US (14:00 GMT). Our medium-term outlook remains negative.
Currency trading and the British pound. The price of the British pound fell yesterday after the decision of the Bank of England not to raise interest rates against the backdrop of the expected slowdown in the UK and worldwide economy. The forecast for GDP growth in the third quarter was 0.6% against 0.7% in the previous period. Despite this, the quotes returned to earlier lost grounds and resumed their growth and were supported by the weakening of the US dollar. Today is also projected strong price movement after the release of statistics on the trade balance and the volume of production in the construction sector in the UK (08:30 GMT). Our medium-term outlook is negative but continued growth in the near future is more likely.
Currency trading and the Japanese yen. The price of the Japanese yen resumed its decline despite the recent weakening of the US dollar after the publication of minutes of the previous meeting of the Federal Reserve. It should be noted the negative impact of statistics on the volume of domestic orders for engineering products, which in August fell by 5.7%. Quotes of the Japanese yen continue to consolidate waiting for a new stimulus for the start of a trend. On Monday, in the US and Japan will be holidays. We maintain a medium-term negative outlook on the yen in relation to a possible easing of monetary policy.
Currency trading and the Australian dollar. The price of the Australian dollar continued to rise against the background of rising prices for iron ore and other export commodities, which have a strong impact on the Australian dollar. The improvement in the housing market of the country also has a positive impact on investor sentiment. After a long period of growth is likely downward correction of prices, but a further increase would signal on the change of the negative trend to the positive. Our medium-term outlook remains pessimistic.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar continued to rise against the weakening US dollar and rising prices for export commodities. Easing concerns about the slowing Chinese economy and technical factors stimulate the buying of the New Zealand dollar. Our medium-term outlook remains negative and we are waiting for the resumption of the negative dynamics in the near future.