11.05.2015 - In New Zealand hinted at the possibility of reducing interest rates
Currency trading and the euro. The price of euro continues to decline after the weekend. The improvement on the US labor market has a positive impact on the US dollar. Thus, on Friday published data on reduction unemployment by 0.1% in April to 5.4%. The number of jobs outside the agricultural sector rose by 223 thousand, which is only 5 thousand less than the forecast. In addition, Germany's trade surplus totaled 19.3 billion, that is 1.0 billion worse than expected, while industrial production fell by 0.5% against the forecasted growth of 0.4%. Today, investors will be focused on the meeting of Eurozone finance ministers, which will discuss the debt crisis in Greece, which tomorrow has to make the next payment on the loan of the IMF. We maintain a medium-term negative outlook on the euro and expect strong growth of price volatility.
Currency trading and the British pound. The price of the British pound could not continue to grow after the victory of the Conservative Party on the elections to the parliament. Investors expect today's statement of the Bank of England on monetary policy to determine the prospects for further raising of interest rates. In case of hints on raising interest rates this year, the growth of the British currency may continue. In the coming days will be published important statistics on the labor market and the country's industry that will influence the future price movement of the pair. Our medium-term view remains negative.
Currency trading and the Japanese yen. The price of the Japanese yen fell slightly against the background of strong labor market statistics in the United States, but was unable to continue this trend and returned to the levels of the previous day. Stabilization of prices may cause the yen to continue sideways movement in the near future. Tomorrow we should pay attention to data on the index of leading economic indicators and on Wednesday will be released statistics on Japan's balance of payments. Our medium-term view on the Japanese currency remains negative.
Currency trading and the Australian dollar. The price of the Australian currency continues to consolidate. Statistics on the index of business sentiment in Australia did not affect the course of trading. So, the rate remained at the level 3. Currently Australian currency quotes are heavily dependent on an iron ore prices, which have recently been adjusted upwards. Tomorrow on investor sentiment may affect the publication of the draft budget in Australia. We maintain our medium-term negative view on the Australian dollar.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar fell sharply after the Reserve Bank of New Zealand hinted at the possibility of reducing interest rates in the event of a further slowdown in the economy. Strong growth of volatility is projected on Tuesday night, after the speech of the head of the Reserve Bank of New Zealand. In the near future rate of decline will slow down, but the negative trend will continue.