17.12.2015 - The Fed raised interest rates by 0.25%
Currency trading and the euro. The price of reduced euro after the Fed for the first time since 2006 raised interest rates by 0.25% to 0.25-0.50%. In addition, the US regulator plans to continue tightening monetary policy in the coming year to reach the level of 3.5%. The rate of increase in interest rates will depend on the macroeconomic statistics and the impact of external factors. The Fed expects inflation continued growth and achievement of the inflation target of 2.0% in the medium term. Today, the course of trading will affect the data on the index of business confidence in Germany (09:00 GMT), the number of initial unemployment claims in the US and manufacturing PMI of Philadelphia (13:30 GMT). We maintain a medium-term negative outlook for the euro and we recommend accumulating short positions.
Currency trading and the British pound. The price of the British pound continued its decline against the strengthening of the US dollar after the Fed decided to raise interest rates by 0.25%. It is worth noting that yesterday in the UK was published statistics on unemployment, which fell by 0.1% to 5.2%. At the same time growth of average wages in the past three months has slowed to 2.4%. Today, we should pay attention to the statistics on retail sales (09:30 GMT) and the balance of production orders in the country. Our medium-term outlook remains negative.
Currency trading and the Japanese yen. The price of the Japanese yen weakened yesterday after the Fed's statement regarding the tightening of monetary policy in the United States. So, the interest rates were raised by 0.25%. Today, support for the yen was the data on the trade balance of the country, which has been without a deficit in November against an expected deficit of 0.21 trillion yen. Tomorrow we should pay attention to the statement by the Bank of Japan on monetary policy in which it will assess the impact of monetary tightening in the United States on Japan's economy. Our medium-term outlook for the Japanese yen remains negative.
Currency trading and the Australian dollar. The price of the Australian dollar continues to consolidate despite strong price movement yesterday. The pressure on the national currency of Australia have yesterday's report on the raising of interest rates by the US Fed and the reduction in prices of commodities, which have traditionally had a strong influence on the course of trading. In the near future the price of the Australian dollar is likely to continue to consolidate, and then resume the decline. We maintain a medium-term negative outlook.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar was not able to continue to grow despite the publication of strong data on GDP growth in the 3rd quarter of this year. It is worth noting that the economy grew by 0.9%, against 0.3% expansion in the second quarter. For the year, GDP growth was 2.3%, which is 0.1% less than in the previous quarter. We expect the price decline of the New Zealand dollar, and recommend accumulating short positions.