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15.11.2016 - The US dollar continues to show a steady growth

Currency trading and the euro. The price of euro stabilized after a sharp fall in the previous day amid expectations of today's publication of report on retail sales in the United States (13:30 GMT). In addition, the dynamics of trading will affect the news on the trade balance and GDP growth in the Eurozone (10:00 GMT). Strengthening of the dollar is due to the expectation of the Fed raising interest rates in December, and the growth of government spending in the US, which will accelerate the pace of economic growth. Volatility will be increased in the coming weeks and we expect the price drop in the medium term and short term period.

Currency trading and the British pound. The price of the British pound was unable to continue the growth and corrected against the strengthening US dollar. Today, the dynamics of trading will affect the report on inflation in the country (09:30 GMT), the growth of which will be the basis for more rapid normalization of monetary policy settings in the country that supports the British pound. The potential for price growth is limited due to the negative expectations of investors about the impact of the country's exit from the EU on British economic indicators. Our medium-term outlook remains negative, but we do not rule out a slight increase in the near future.

Currency trading and the Japanese yen. The price of the Japanese yen shows confident fall on the background of strengthening the dollar, reducing the interest in defensive assets and the expectation of the rise of divergence in monetary policy of the Bank of Japan and the Federal Reserve. Traders also pay attention to the statement by the head of the central bank of Japan Haruhiko Kuroda, in which he called on companies to increase wages to support the inflation growth in the country. We recall that yesterday was published the data on the growth of GDP by 0.5% in the 3rd quarter, which is 0.3% better than expected. Our medium-term outlook for the yen remains negative and we are waiting for a decline in the coming weeks.

Currency trading and the Australian dollar. The price of the Australian dollar stopped the decline and consolidated in anticipation of new incentives for decline. Support for the Australian currency was the recent increase in the price of iron ore that is a key export product in the country. In minutes of the previous meeting of the RBA noted strong growth in house prices, which is a risk for the economy, but in the opinion of the RBA risks associated with China have decreased. According to our estimates, strong growth on commodity markets will probably be replaced by the fall, which will put pressure on the Australian currency in the future. Our medium-term outlook remains negative.

Currency trading and the New Zealand dollar. The price of the New Zealand dollar slightly corrected up after a strong fall of the previous days. Investors are waiting for the result of today's auction for dairy products, the price of which has traditionally had a strong impact on the dynamics of the New Zealand dollar. Despite this, the main influence on the course of trading this week will have external factors. Given the recent decline in interest rates of the central bank of the country and the strengthening of the US dollar, we expect the price fall in the medium term.

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RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.
The CIF license of PFX Financial Professionals Ltd has been suspended by the Cyprus Securities and Exchange Commission until the 24th of December 2016. Please click here