09.11.2015 - Today, the markets are corrected after a strong growth of the dollar

Currency trading and the euro. The price of euro showed a sharp drop at the end of last week after the publication of strong statistics on the US labor market, which has strengthened the US dollar. Thus, the unemployment rate fell by 5.0% in October, which was 0.1% better than the previous figure. At the same time the non-farm payrolls in the United States increased by 271 thousand, against 137 thousand in September. The average hourly wage increased by 0.4%, which is 2 times better than the forecast. The probability of the Fed raising interest rates in December increased significantly, leading to a continuation of the downward movement of prices of the euro. Today, a price correction is due to the fixing of positions after a strong fall. The course of trading will affect the data on the trade balance in Germany. Our medium-term outlook remains negative.

Currency trading and the British pound. The price of the British pound today shows the correction after a sharp fall last days caused by a decrease in forecasts for inflation and the strengthening of the US dollar after the data on the labor market in America. The correction is likely to continue today due to technical factors. Today, the volatility will decrease compared with the previous week. Today in the UK will not be published important macroeconomic data and tomorrow we should pay attention to the review of retail sales in the UK. We expect falling prices in the medium term, despite the decline in its potential and we expect price correction today.

Currency trading and the Japanese yen. The price of the Japanese yen showed a sharp drop against the US dollar in relation to its strengthening against the background of the fall in the unemployment rate in the US and increasing the probability of the Fed raising interest rates. Wage growth in Japan at 0.6% in September compared to the same period last year, which was 0.2% better than the previous months resulted in improved investor sentiment and stopped the decline in the yen. Tomorrow will be published an important statistics on the balance of payments. We maintain a negative medium-term outlook for the yen.

Currency trading and the Australian dollar. The price of the Australian dollar is adjusted upward after the sharp fall on Friday caused by the strengthening of the US currency. The slowdown in industrial growth in China adversely affect the price of commodities and the demand for them, which pulls down the Australian dollar. Tomorrow, on the dynamics of trading will affect news index of business sentiment in Australia. We expect price correction today, and after it the fall with high probability will resume. Our medium-term outlook remains negative.

Currency trading and the New Zealand dollar. The price of the New Zealand dollar is corrected upwards following the Australian dollar after the fall on Friday. The current upward momentum may continue today, but its potential is limited and is likely to continue falling in the near future. Tomorrow will be published a report on the financial stability of the Reserve Bank of New Zealand, after which will speak central bank chief Graeme Wheeler. Our medium-term outlook remains negative and we recommend holding short positions.

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