14.03.2016 - The week will be filled with important events
Currency trading and the euro. The price of euro restores the position following the recent price correction. Euro is supported by weak statistics on industrial production in China, which increased investors' concerns about global economic growth. It is worth noting that last week, the EC has decided to strengthen the incentives in the euro area that in the near future and medium term, will put pressure on the euro quotes. This week, the central event will be the Fed's statement on monetary policy parameters which are likely to remain unchanged, but the rhetoric of the Fed's chairwoman can greatly affect the mood of traders. Today, it is worth paying attention to statistics on the volume of industrial production in the Eurozone (10:00 GMT). Our medium-term outlook for the euro remains negative.
Currency trading and the British pound. The price of the British pound increases against the US dollar weakening. Strong movement of the British currency in the coming months is possible amid speculation on a referendum on Britain's membership in the European Union. We recall that a plebiscite will be held on 23 June. Strong price movements is possible on Wednesday after the publication of a report on the labor market in the UK. The rhetoric of the Bank of England on Thursday may also significantly affect the market sentiment. Our medium-term outlook for the British pound remains negative.
Currency trading and the Japanese yen. The price of the Japanese yen resumed its decline despite the positive statistics on the volume of domestic orders for engineering products with the exception of orders for ships and utility equipment. So, this index in January showed an increase of 15.0% vs. expected 2.0%. Tomorrow will be published the statement of the Bank of Japan on monetary policy, the parameters of which are likely to remain unchanged. In addition, will be released an important statistics on industrial production in the country. After long price consolidation, we expect the resumption of the fall of the price of the yen against the dollar. Our medium-term outlook remains negative.
Currency trading and the Australian dollar. The price of the Australian dollar showed growth against the background of improving conditions in the commodity markets, which traditionally have a strong impact on the dynamics of the local currency of Australia. Contradictory data from China could does not have a significant impact on investor sentiment. Thus, in January-February, the volume of industrial production increased by 5.4% compared with the same period last year, which was 0.2% less than the forecast and 0.5% less than in December. During the same period, the volume of investment in capital assets grew by 10.2% against the forecast of 9.5%. Tomorrow we should pay attention to the publication of the Minutes of the previous meeting of the Reserve Bank of Australia. Our medium-term outlook for the Australian dollar remains negative.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar recovered a significant portion of the losses after a strong decline, which was due to a decrease in the RBNZ interest rate to 2.25%. It is worth noting that on Wednesday night will be published important data on GDP growth in the 4th quarter, which may lead to strong price movements. Our medium-term outlook remains negative and we are waiting for the resumption of the negative dynamics of prices in the near future.