Currency trading and the euro. The price of euro ended the growth caused by the weakening of the US dollar and started to correct downwards after strong upward movement. It is worth recalling that the devaluation of the yuan has led to sales of the US dollar and reduced investor confidence in the Fed raising interest rates in September. It should be noted the negative impact of statistics on the volume of industrial production in the euro area, which in June fell by 0.4%. Today, the focus of investors will be on the data on retail sales in the US (12:30 GMT) and inventories in the US (14:00 GMT). Tomorrow will be published important statistics for GDP growth in the euro area. We expect the price drop of the euro in the coming days and in the medium term.
Currency trading and the British pound. The price of the British pound continued to rise gradually after the publication of statistics on the labor market in the UK. Thus, the unemployment rate remained at 5.6%. Positive news were the reduction of the number of unemployed by 4,9 thousand, against expected growth of 1.4 thousand. Tomorrow will be published important data on the volume of production in the UK construction sector. Further movement of the British pound will strongly depend on the dynamics of the US dollar. The growth in the near future is limited and we expect a drop in prices in the near future.
Currency trading and the Japanese yen. The price of the Japanese yen fell against the dollar correction, which began to strengthen after the previous reduction. In addition, investors were disappointed by the statistics on the volume of domestic orders for engineering products, which fell by 7.9% in June, against growth of 0.6% in May. Support for the price of the yen could be the reduction of investor confidence in the Fed raising interest rates in September. Despite this, we expect the fall of the Japanese currency in the medium term and in the near future.
Currency trading and the Australian dollar. The price of the Australian dollar after strong upward movement returned to the levels of last week, but then resumed its downward movement. The People's Bank of China said that the adjustment of the yuan exchange rate is almost completed. At the same time it is worth noting the negative impact of low commodities prices. We expect a further fall in the price of the Australian dollar in relation to the negative impact of the risks associated with China, the soft monetary policy of the RBA and the fall in iron ore prices.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar finished its upward correction and continued negative dynamics amid the strengthening of the US dollar and the fall of the Australian dollar. Downward pressure on the New Zealand dollar also had news on the reduction of the index of business sentiment in the manufacturing sector of New Zealand, which in July fell to 53.5, against 55.1 in June. The expected easing of monetary policy of the Reserve Bank of New Zealand will lead to a drop in prices in the medium term.