11.11.2015 - Industrial production growth in China has slowed
Currency trading and the euro. The price of euro corrected upward and probably will continue to consolidate around current levels today due to the holiday in the US and the lack of important macroeconomic data in the Eurozone. The political instability in Portugal has a limited impact on the price of the euro. The course of trading will be affected by the speech of Mario Draghi (13:15 GMT). Rising volatility is forecasted tomorrow after the release of statistics on industrial production in the euro area and the speech of the Fed's chairwoman Janet Yellen. Our medium-term outlook for euro remains negative.
Currency trading and the British pound. The price of the British pound is corrected upwards after a sharp fall last week. Today, the dynamics of trading will be affected by the data on the labor market in the country (9:30 GMT), after the publication of which will take place the speech of the Bank of England (10:30 GMT). Forecast of weak inflation reduces the probability of raising interest rates in 2016, which had a negative impact on the British pound. Our medium-term outlook remains negative and we expect increased volatility today.
Currency trading and the Japanese yen. The price of the Japanese yen strengthened today against the background of technical factors, as well as in connection with the publication of weak statistics on industrial production in China, whose growth has slowed to 5.6% in October, which is 0.2% worse than expected. Tomorrow, the dynamics of trading will be affected by the data on the volume of domestic orders for engineering products. Activity on the market today will be reduced due to the holiday in the US. We expect the fall of the yen in the medium term and in the near future.
Currency trading and the Australian dollar. The price of the Australian dollar showed growth today after the publication of statistics on retail sales in China, which in October rose to 11.0% compared with the same period last year, which is 0.1% better than analysts' forecasts. At the same time industrial production growth in China slowed to 5.6% in October, compared to the same month last year. Analysts expected acceleration of growth to 5.8%. Consumer confidence in Australia totaled 3.9% in November, which is 0.3% less than the previous figure. Low commodity prices continue to put pressure on the quotations of currency. Tomorrow the course of trading will be affected by the data on the level of employment in Australia. Our medium-term outlook remains negative.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar rose against the background of growth in retail sales in China, despite the continued slowdown in the industry. Yesterday, the Reserve Bank of New Zealand issued a statement according to which the country's financial system remains healthy, but faced increased internal and external risks. Housing prices in Auckland grow at a stronger pace and its decline may be negatively displayed on banking stability. We expect falling prices in the medium term.