18.12.2015 - The Bank of Japan has changed the parameters of the program of asset purchases
Currency trading and the euro. The price of euro continued its decline yesterday against the strengthening of the US dollar after the Fed raising interest rates by 0.25%. Support for the dollar was also the positive data on the number of initial unemployment claims in the United States, which dropped to 271 thousand against 282 thousand earlier. On the other hand, the Philadelphia manufacturing PMI fell to -5.9 in December, compared with an expected 2.1. Today, the course of trading will affect the balance of payments news Eurozone (09:00 GMT). We maintain our medium-term negative outlook for the euro today and are likely to see fixation positions before the weekend.
Currency trading and the British pound. The price of the British pound is corrected upwards after a strong decline caused by the strengthening of the US dollar after the decision of the Federal Reserve on raising interest rates. Support for the British currency yesterday was the news about the increase in retail sales in November by 1.7% vs. expected 0.6%. At the same time, the balance of production orders improved to -7 in December, against -11 in November. Today will not be published vital statistics, and investors will fix positions before the weekend. Our medium-term outlook remains negative.
Currency trading and the Japanese yen. The price of the Japanese yen today showed strong price movement after the Bank of Japan revised the parameters of the asset purchase program and intends to buy bonds with longer repayment period of 7-12 years, against 7-10 years earlier. In addition, the regulator announced its intention to increase the volume of purchases of ETF, investing in "physical and human capital." As a result, the price of the Japanese yen is rising against the US dollar. In spite of this, we maintain a negative outlook on the yen.
Currency trading and the Australian dollar. The price of the Australian dollar is corrected after a strong decline previously caused by the tightening of monetary policy of the Fed. At the same time, the RBA had previously stated about the likely lowering interest rates in order to maintain economic growth against the background of low inflation in the country. In addition, the Australian dollar is under the pressure from low commodity prices. We maintain a negative medium-term outlook for the Australian dollar.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar has declined due to the strengthening of the US dollar after the decision to tighten monetary policy in the US and the Federal Reserve's plans for the further increase in interest rates. Support for the New Zealand currency was the data on the index of confidence in the business circles of the country, which in November rose to 23.0, against 14.6 in the previous month. Our medium-term outlook for the New Zealand dollar remains negative.