17.11.2015 - The US dollar continued to rise

Currency trading and the euro. The price of euro continues to decline after yesterday's publication of statistics on inflation at 0.1% in October compared with the previous year. At the same time, core inflation accelerated to 1.1%, which is 0.1% better than expected. Weak data on manufacturing PMI of New York could not change the mood of investors. It should also be noted the negative impact of the terrorist attacks in Paris. Today, the dynamics of trading will be affected by the news index of business sentiment in Eurozone (10:00 GMT), the volume of industrial production in the US (14:15 GMT) and the key event of the day will be the release of the report on inflation in the US (13:30 GMT), the growth of which will increase the probability of the Fed raising interest rates. We expect increased volatility and maintain a negative outlook for the euro.

Currency trading and the British pound. The price of the British pound after a long consolidation resumed falling against the strengthening US dollar and euro price reduction. Investors are waiting for today's publication of the statistics on inflation in the United Kingdom (09:30 GMT) and the USA (1330 GMT). Inflation growth in the UK could lead to an increase in confidence with respect to the further raising of interest rates the Bank of England after the Fed. We expect price drop pounds in the medium term and recommend opening short positions.

Currency trading and the Japanese yen. The price of the Japanese yen resumed its decline amid growing confidence in the Fed's monetary tightening and its weakening in Japan. It is worth noting that yesterday was published preliminary statistics on Japan's GDP, which in the third quarter decreased by 0.2% against an expected decline of 0.1%. Today, volatility will be increased after the release of data on inflation in the United States, which strongly affect market expectations on the timing of the Fed raising interest rates. We maintain a medium-term negative outlook on the yen.

Currency trading and the Australian dollar. The price of the Australian dollar continues to decline due to the strengthening of the US currency, as well as lower commodities prices. It is worth noting that in the minutes of the previous meeting of the RBA noted that growth prospects for the Australian economy have improved in recent months. Tomorrow the course of trading will be affected by the data on the index of leading economic indicators in Australia, and we now expect a rise in volatility. We recommend to keep the short positions and maintain the medium-term negative outlook.

Currency trading and the New Zealand dollar. The price of the New Zealand dollar continued to consolidate after a long decline and the downward momentum we estimate will continue in the near future. Strengthening of the US dollar and the negative impact of lower commodity prices are the main factors that affect the mood of investors. We recommend that to hold short positions and maintain the medium-term negative outlook.

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