10.05.2016 - Yen drops after statements on the possible interventions

Currency trading and the euro. The price of euro shows a slight decrease against the US dollar on the background of statements by the Vice-President of the ECB regarding the saving of monetary policy settings in the euro area at the current levels in the near future. Today, the dynamics of trading will affect the data on the trade balance and industrial production in Germany (06:00 GMT), which is the largest economy in the Eurozone. In addition, we should pay attention to the data on the index of optimism in the US small business (10:00 GMT) and wholesale inventories in the US (14:00 GMT). Our medium-term outlook for the euro remains negative and we expect the price decline in the near future.

Currency trading and the British pound. The price of the British pound showed a low level of volatility in the absence of vital statistics. Tomorrow investors' activity may increase after the publication of statistics on the volume of industrial production in the UK, which may disappoint investors. In addition, in the coming weeks is likely the fall of the British currency amid speculations regarding a possible exit of the country from the EU, which will be negatively displayed on the British economy.

Currency trading and the Japanese yen. The price of the Japanese yen decreases against the strengthening of the US dollar, after the statements of Finance Minister Taro Aso on possible interventions on the market to counter speculative strengthening of the yen, which will be negatively displayed on the rates of inflation and economic growth of the country. Tomorrow will be published data on the index of leading economic indicators in Japan. Support for the Japanese currency could be a drop in commodity and stock markets, which will lead to increased demand for defensive assets. Our medium-term outlook remains negative.

Currency trading and the Australian dollar. The price of the Australian dollar continues to decline due to the negative dynamics of prices for the main export commodities. The data on the consumer price index in China, which was 2.3% in April compared with the same period last year, have not been able to influence the course of trading. Tomorrow we should pay attention to the data on the index of consumer confidence in Australia, but more important for the dynamics of the price will be the commodity markets. Our medium-term outlook for the Australian dollar remains negative.

Currency trading and the New Zealand dollar. The price of the New Zealand dollar continued to fall against the background of negative dynamics of prices commodities. In addition, investors expect the speech of the head of the Reserve Bank of New Zealand Graeme Wheeler (21:05 GMT) and the publication of the report on financial stability in New Zealand (21:00 GMT). It is noteworthy that the recent reduction in key interest rates of the RBA, increases the probability of easing of monetary policy of the RBNZ, that leads to the New Zealand’s currency soon fall. Our medium-term outlook remains negative.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.