09.12.2015 - The growth of consumer inflation in China has pleased investors
Currency trading and the euro. The price of euro yesterday showed growth against the publication of statistics on GDP growth in the euro area by 0.3% in the third quarter, in line with expectations and previous estimates. The annual GDP growth rate was 1.6%. In addition, the increase in euros was due to a decrease in the dollar against the background of weak statistics from China. Today, the dynamics of trading will be affected by the data on the trade balance in Germany (07:00 GMT) and wholesale inventories in the US (15:00 GMT). The volatility of the market has declined substantially compared to last week. We expect the resumption of the negative dynamics of the euro and maintain the medium-term negative outlook.
Currency trading and the British pound. The price of the British pound continued to decline and broke through the psychologically important level of 1.50. The reason for the negative sentiment was the data on the volume of production in the manufacturing industry the UK in October, which fell by 0.4% against the forecast of 0.1%. Today will be published the minutes of the Bank of England meeting (10:30 GMT). Investors will not rush to open new positions ahead of tomorrow's speech of the head of the Bank of England and the publication of a report on the trade balance of the country. We maintain a medium-term negative outlook.
Currency trading and the Japanese yen. The price of the Japanese yen continued to rise against the background of strong statistics on the volume of domestic orders for engineering products in Japan, which grew by 10.7% in October, against the expected decline of 1.5%. Strong data concerning the industry of the country reduce the likelihood of launching new stimulus measures in Japan that supports the price of the yen. Tomorrow we should pay attention to the business sentiment index of large industrial companies in Japan. Our medium-term outlook remains negative.
Currency trading and the Australian dollar. The price of the New Zealand dollar decline stopped after a recent fall caused by negative trends on the market and a decrease in imports of raw materials in China, which is a major consumer of Australian goods. Today, in China has been published statistics on the consumer price index, which rose by 1.5% in November, compared to the same period last year, against the forecast of 1.4%. This fact points to the effectiveness of incentives of Chinese authorities. Consumer confidence in Australia fell in December by 0.8%, against growth of 3.9% in the previous month. Tomorrow will be published important statistics on the labor market in Australia, which last time supported the Australian currency. Our medium-term outlook remains negative.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar has stabilized and investors are awaiting for the decision of the Reserve Bank of New Zealand (20:00 GMT). On the one hand the growth prospects of the economy and the dynamics of prices for dairy products improved but at the same time, inflation has remained below target levels, which makes it possible to continue to lower interest rates by the RBNZ. We expect increased volatility tonight. Our medium-term outlook remains negative.