12.10.2016 - ​The euro continued a confident decline

Currency trading and the euro. The price of euro showed decline amid stronger US dollar due to the increasing likelihood of the Fed raising interest rates. Strong influence on the dynamics of trading in the near future will have a statement by the Fed, on the need for normalization monetary policy in the US. On the other hand, the UK’s exit from the EU is negatively displayed on the economy of the union. Today, it is worth paying attention to statistics on the volume of industrial production in the Eurozone (09:00 GMT) and the publication of minutes of the previous meeting of the US Federal Open Market Committee (18:00 GMT). We maintain our medium-term negative outlook, but we can see a slight rebound after the recent decline.

Currency trading and the British pound. The price of the British pound corrected upwards against fixing positions after a strong decline in the last few days. Investors' concerns about the consequences of the UK’s exit from the EU remain high, which, together with the deficit of trade and payment balances, as well as the strengthening of the US dollar, put strong pressure on share prices. Traders are waiting for tomorrow's decision of the Bank of England's monetary policy and in the case of its easing, the fall can be resumed. We forecast a decline in prices in the medium term, but do not rule out further price correction.

Currency trading and the Japanese yen. The price of the Japanese yen is consolidating, but local trend remains negative. Representatives of the Bank of Japan continued to declare their readiness to further easing of monetary policy if necessary. Today was published a report on domestic orders for engineering products in Japan, with the exception of the vessels and municipal equipment that showed a decrease of 2.2% in August against the forecast of decline by 4.4%. Our medium-term outlook remains negative and we expect the price to drop in the near future.

Currency trading and the Australian dollar. The price of the Australian dollar corrected upwards amid the weakening price of Chinesecurrency on the background of the US dollar growth in anticipation of tightening in US monetary policy. In addition, the consumer confidence index in Australia rose by 1.1% in October against an increase of 0.3% in September. Tomorrow a strong influence on the course of trading will have data on China's trade surplus, which is the main trading partner of Australia. We expect the price to drop in the near future and maintain the medium-term negative view.

Currency trading and the New Zealand dollar. The price of the New Zealand dollar showed a slight correction after the recent decline against the strengthening of the Australian dollar and profit-taking after a decline. Today, it is worth paying attention to the statistics on the index of business sentiment in the manufacturing sector of New Zealand (21:30 GMT). Our medium-term outlook remains negative and we expect a continuation of the negative dynamics of prices in the near future.

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