17.05.2016 - Traders are waiting for the US inflation data
Currency trading and the euro. The price of euro showed little change amid the absence of vital statistics that can significantly affect the course of trading. Investors are waiting for new signals to open positions. Also yesterday, in Germany and France was the day off. On the dynamics of trading today may affect the data on the trade balance in the Eurozone (09:00 GMT), but the main event of the day will be the publication of the report on the Consumer Price Index in the US (12:30 GMT), which is one of the key indicators that can affect the monetary policy in the United States. In addition, we must pay attention to the statistics on the housing market in the US (12:30 GMT). We expect increased volatility today and maintain the medium-term negative outlook.
Currency trading and the British pound. The price of the British pound showed growth against the background of the weakening US dollar and technical factors. Today we expect increased volatility after the publication of the statistics on inflation in the UK (08:30 GMT). In addition, tomorrow will be published important data on the labor market in the country. We expect the decline in the British currency in the near future due to the increasing tension regarding a possible exit of the UK from the EU after referendum on this issue on 23 June.
Currency trading and the Japanese yen. The price of the Japanese yen shows a low level of volatility, and after the current consolidation we will probably see a strong price movement. It is worth noting that according to today's report, the volume of industrial production in March in Japan increased by 3.8%, which is 0.2% more than the forecast. In addition, preliminary statistics on Japan's GDP for Q1 will be published tomorrow, which may lead to a strong movement. Our medium-term outlook for the yen remains negative due to the divergence in the monetary policy of the USA and Japan.
Currency trading and the Australian dollar. The price of the Australian dollar began to correct after a significant decrease in the previous days. Thus, according to the report, the situation on the labor market of the country is positive and can strengthen the country's economy. It is worth noting that vehicle sales in the domestic market in Australia fell by 2.5% in April, after rising 2.2% in March. Strong influence on the course of trading will have news on the labor market in Australia, which will be released on Thursday. The current correction may continue in the near future, but in the medium-term outlook remains negative.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar rose after the Australian currency. In addition, the price of oil supported growth. Today the trading can insignificantly affect the data on the producer price index (22:45 GMT). Our medium-term outlook remains negative and we expect the resumption of decline due to the weak figures of the trade balance in the near future and low inflation in the country, which will likely lead to a decrease in the Reserve Bank of New Zealand interest rates.