Currency trading and the euro. The price of euro shows a low level of volatility due to the expected publication of important statistics on the US retail sales on Thursday and the Consumer Price Index on Friday, which greatly affect investors' expectations regarding the Fed’s monetary policy next week. Today, it is worth paying attention to statistics on employment in the euro area and the index of business sentiment of Eurozone from ZEW (09:00 GMT). In the US will be published news on the index of optimism in the small business (10:00 GMT), which may also affect the mood of investors. We expect an increased level of volatility in the coming weeks and our medium-term outlook remains negative.
Currency trading and the British pound. The price of the British pound showed growth after increasing the likelihood of the Fed’s interest rates hike next week dropped, leading to a weakening of the US dollar. Today, the dynamics of trading in the UK will be affected by data on inflation (08:30 GMT), which affect the decision of the Bank of England on monetary policy, which will be published on Thursday. Tomorrow in the country will published a report on the labor market, which may also lead to an increase in volatility. Our medium-term outlook remains negative, despite the possibility of short-term growth in the near future.
Currency trading and the Japanese yen. The price Japanese yen today showed a slight increase due to the weakening of the US dollar as well as against the background of positive statistics on the index of business sentiment in large industrial companies of Japan, which rose to 2.9 in Q3 vs. -6.5. Strong influence on the dynamics of trade in the near future will be the movement of the stock markets, which will lead to falling growth in demand for the yen as a defensive asset, as well as investors' expectations regarding the timing of the Fed raising interest rates. Our medium-term outlook remains negative, but we can see further consolidation in the near future.
Currency trading and the Australian dollar. The price of the Australian dollar resumed its fall after the recent rebound in prices. On the one hand the support has become the news on index of business sentiment in Australia, which rose to 6 in August, which is 2 more than in the previous period. On the other hand, in China it has been published positive statistics. Thus, the volume of industrial production increased by 6.3% in August, which is 0.3% more than the forecast, while retail sales increased by 10.6% compared with the same period last year, which is 0.4% better than expected. Investors are waiting for the publication of important news on the Australian labor market, which will be published on Thursday, but the main impact will be the dynamics of the US dollar. Our medium-term outlook remains negative.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar after yesterday's rebound, renewed drop. Investors are waiting for news from the United States on further steps of the Fed on monetary policy. The volatility in the coming weeks will be increased. Today, it is worth paying attention to the data on balance of payments of New Zealand (22:45 GMT), and tomorrow night will be published report on the country's economic growth in the second quarter. Our medium-term outlook remains negative and we expect a continuation of the current dynamics in the near future.