Currency trading and the euro. The price of euro continues to consolidate in anticipation of the publication of statistics on retail sales in the US tomorrow. Today, investors' activity is also likely to rise after the speech of the head of the Federal Reserve Janet Yellen (14:30 GMT). In addition, the impact on the mood of traders will have news on industrial production in the Eurozone (10:00 GMT) and the number of initial unemployment claims in the US (13:30 GMT). Increased the probability of rising interest rates of the Fed and their decline in the euro area in December, continue to be the main factors that put pressure on the European currency quotes. Our medium-term outlook for the euro remains negative.
Currency trading and the British pound. The price of the British pound shows a steady growth due to the release of strong statistics on the labor market in the UK, according to which the unemployment rate fell to 0.1% in September to 5.3%, the lowest level since April 2008. In addition, the employment rate was the highest since the beginning of observations and totaled 73.7%. Today, the dynamics of trading will be affected by external factors, and we may see a correction after the strong growth. Our medium-term outlook remains negative.
Currency trading and the Japanese yen. The price of the yen strengthened against the background of US dollar correction after the strong increase at the end of last week. Also today, the Japanese currency was supported by strong data on the volume of domestic orders for engineering products in Japan, which grew by 7.5% in September, against a decline of 5.7% in the previous month. Tomorrow a strong impact on the dynamics of trading will have data on industrial production in the country in September and retail sales in the United States. We expect the resumption of the fall of the price of the yen in the near future and medium term.
Currency trading and the Australian dollar. The price of the Australian dollar showed strong growth today after the publication of statistics on the unemployment rate, which fell in October to 5.9%, which is 0.3% less than analysts' forecasts. At the same time employment increased by 58,6 thousand, vs. expected 14,8 thousand. This fact significantly reduced the likelihood of interest rate cuts by the Reserve Bank of Australia. Despite the strong data from Australia, the expected tightening of monetary policy in the United States negatively displayed on the Australian dollar. Our medium-term outlook remains negative.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar continues to consolidate after the fall caused by the strengthening of the US dollar. The improvement in the labor market in Australia has a positive effect on investor sentiment. In this regard, the potential of quotations’ reduction has declined. The dynamics of trading in the coming days will continue to be influenced by external factors. We expect falling prices in the medium term and recommend holding short positions.