14.09.2015 - Investors' activity on the first day of the week will be low
Currency trading and the euro. The price of euro today, has not changed much after a confident growth at the end of last week, caused by the weakening of the US currency after the publication of weak statistics on the index of US consumer confidence from the University of Michigan, which in September unexpectedly fell to 85.7, against the forecast of 91.4. Today, volatility will be reduced and the course of trading will be affected only by the news on industrial production in the Eurozone (09:00 GMT) and speculation about the Fed's decision on US monetary policy, which will be published on Thursday, and will cause strong price movement. Our medium-term outlook remains negative, but we do not recommend to open new positions before the Fed's decision.
Currency trading and the British pound. The price of the British pound has stabilized after the strong growth last week, which was caused by hawkish mood in the Bank of England. Thus, during the statement regulator noted the expectation of accelerating inflation at the end of the year, which will contribute to the rise in interest rates. At the same time, at the moment the consumer price index remains at a low level. Tomorrow will be published an important data on inflation in the country, and on Wednesday on the labor market, which greatly affect the dynamics of the British pound. Our medium-term outlook remains negative, despite the possibility of further upward price movement in the near future.
Currency trading and the Japanese yen. The price of the Japanese yen continues to consolidate within a narrow range. Investors are waiting for the results of the meeting of the Federal Open Market Committee. Negative for the Japanese currency today was the data on industrial production in Japan, which in July fell by 0.8%, which is 0.2% less than the previous figure, and analysts' expectations. Our medium-term outlook remains negative and we expect a strong increase in volatility this week.
Currency trading and the Australian dollar. The price of the Australian dollar showed increased volatility against the publication of statistics on industrial production in China. Thus, the rate in August was 6.1%, vs. expected 6.3%, and the previous value of 6.0%. Tomorrow we expect the growth of interest of the Australian dollar after the publication of minutes of the previous meeting of the Reserve Bank of Australia, in which are likely to be hints of further easing of monetary policy. We expect the decline in prices in the medium term, but assume continued upward correction in the near future.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar continues to consolidate after a minor upward correction. Earlier, quotations have decreased strongly after a decline in interest rates of the RBNZ by 0.25% to 2.75%. Our expectations for the New Zealand dollar remains stable negative due to the negative statistics on the trade balance of the country and the expectation of further reduction in interest rates.