10.06.2015 - The Japanese yen has sharply strengthened
Currency trading and the euro. The price of euro stabilized after the strong growth on Monday. Price volatility remains elevated due to the speculations regarding the Greece negotiations with creditors on reforms in the country. It is worth mentioning the publication of statistics on the growth of euro area GDP, which is in the 1st quarter rose by 0.4%, in line with expectations. The increase in government spending, investment and weakening of the euro was supported the positive dynamics of the GDP. On the other hand, in the United States was released statistics on the number of vacancies, which reached a maximum value in the history of recording statistics 5.38 million against the expected 5.03 million. Wholesale inventories in the United States also rose in April by 0.4%. Today, volatility is likely to fall, but the course of trading may be influenced by the news on the Greek crisis. We maintain a medium-term negative outlook for the euro.
Currency trading and the British pound. The price of the British pound showed growth against the background of unexpectedly strong statistics on the country's trade balance, the deficit of which fell in April to 8.6 billion pounds, against a forecast of 10.0 billion pounds. Today we expect increased investorâs activity after the release of important statistics on the volume of industrial production in April (8:30 GMT), as well the forecast for GDP growth in the UK (14:00 GMT). We maintain a medium-term negative outlook on the British pound, but we can see its increase soon.
Currency trading and the Japanese yen. The price of the Japanese yen started to fall yesterday after the publication of statistics on the consumer price index in China, which slowed to 1.2%. This fact has strengthened investors' concerns about the risk of deflation in the world. The main driver of price decline today was the statement of the Bank of Japan's chairman Haruhiko Kuroda as to that, the exchange rate of the yen is at a low level and probably will not decline further. Support for the Japanese currency also was the data on the growth of the volume of new domestic orders for engineering products in April by 3.8%, against an expected decline of 2.0%. In the near future strengthening of the yen may continue, but the medium-term outlook remains negative.
Currency trading and the Australian dollar. The price of the Australian dollar showed a sharp drop today, but afterwards it has returned to the previous levels. The reason for the downward movement was the publication of statistics on the index of consumer confidence, which in June fell by 6.9%, against growth of 6.4% in May. At the same time, the head of the Reserve Bank of Australia said about the possibility of further reduction in interest rates and the need to reduce the price of the Australian dollar in the future. Tomorrow we should pay attention to the statistics on the labor market in the country. Our medium-term outlook remains negative and we recommend holding short positions.
Currency trading and the New Zealand dollar. The price increases after the New Zealand dollar's sharp decline in recent weeks. Investors fixed positions and are in no hurry to open new before today's report and the statement of the Reserve Bank of New Zealand on monetary policy (21:00 GMT). According to our forecasts, the regulator may hint at the possibility of reducing interest rates to stimulate economic growth in the country. We expect a drop in prices in the near future.