14.07.2014 - Activity of traders on the first day of the week will be low
The price of euro during the last trading session of the week and this morning continued to consolidate above 1.3590. The reason for the low volatility has been the lack of important events, both in Europe and in the USA. Today the course of trading will be affected by data on industrial production in the Eurozone (09:00 GMT) and the speech of the ECB President Mario Draghi (17:00 GMT). We expect weak activity of traders today and save midterm negative outlook for the euro.
The price of the British pound as well as the euro continues to move in a sideways trend in the absence of information that could lead to increased volatility. The index of leading economic indicators in the UK made 0.5% that reiterated the result of the previous month. This week, the price dynamics will depend on the inflation data in the UK (Tuesday) and employment (Wednesday). Obviously, the bulls do not have the strength to continue to grow and we can see the beginning of a correction of the British pound in the short term, but we keep the medium-term positive outlook for the pound.
Strengthening of the Japanese yen during the last trading session of the week stopped and the price continues to consolidate around the level of 101.40. Today, the dynamics of prices will depend on the data on industrial production in Japan (04:30 GMT). Increased demand for the yen is due to fears of deterioration in the Middle East, besides an increase in tension is observed between Russia and Ukraine. We expect to change the of current trends and maintain midterm negative outlook for the Japanese yen.
The price of the Australian dollar is kept at current levels in relation to the statement of the head of Reserve Bank of Australia regarding considerable potential of fall of the national currency. The growth of price volatility is expected tomorrow after the release of data on sales of new cars in the country, as well as in connection with the publication of the minutes of the previous meeting of the Reserve Bank of Australia. Medium-term outlook for the Australian dollar remains negative, but to open short positions we need to wait for a signal.
The price of the New Zealand dollar, despite the strong economic performance of the country, has stopped the growth and is consolidating in a narrow sideways range above 0.88. Growth of volatility is possible today in connection with the release of statistics on the Consumer Price Index of New Zealand in the second quarter (22:45 GMT), where is expected the growth rate by 0.1% to 0.3%. We believe that the potential for further growth is very limited by the policy of the Reserve Bank of New Zealand, but there are no reasons for the substantial reduction in prices.