19.10.2015 - China's economic growth slowed to 6.9%
Currency trading and the euro. The price of euro continues to consolidate after the sharp decline last week, which was caused by the publication of statistics on core inflation in the US, which grew by 0.2% in September and increased the likelihood of the Fed raising interest rates this year. At the same time, analysts expect that ECB President Mario Draghi may this week announce on the strengthening measures on stimulating economic growth and inflation in the euro area. Statistics on China today turned out to be controversial. During the trading session, we should pay attention to the monthly report of the Central Bank of Germany (10:00 GMT). Investors are waiting for tomorrow's speech by Fed chairwoman, which could lead to a weakening of the European currency. Our medium-term outlook remains negative.
Currency trading and the British pound. The price of the British pound corrected after it was unable to continue the upward movement last week. Currently quotes are under the pressure of rising demand for the US dollar in relation to the statistics on inflation in America. Increased activity is forecasted tomorrow after the speech of the head of the Bank of England in which he may hint at an earlier rise in interest rates due to the improvement in the labor market in the country where the unemployment rate in September fell to 5.4%. Our medium-term outlook for the pound is negative.
Currency trading and the Japanese yen. The price of the yen stabilized after recent falls. It is worth noting that the main reason for the negative dynamics of the yen was the strengthening of the US dollar. At the same time the head of the Bank of Japan Haruhiko Kuroda said that the country's economy continues to grow at a moderate pace and loose monetary policy will remain as long as inflation in the country will not rise to the target level of 2.0%. At the moment, the consumer price index is near zero. Some experts expect the strengthening of Japan's stimulus measures to support growth of the Japanese economy, which will be negatively displayed on the yen. Our medium-term outlook for the Japanese currency remains pessimistic.
Currency trading and the Australian dollar. The price of the Australian dollar showed increased volatility following the publication of important statistics from China, which have been mixed, but overall had a positive impact. Thus, China's GDP growth slowed in the third quarter to 6.9%, which is against 7.0% in the previous period, but was 0.1% better than analysts' expectations. The growth of industrial production fell in September to 5.7%, which is 0.3% worse than analysts' forecasts. Tomorrow will be published the minutes of the previous meeting of the Reserve Bank of Australia, which traditionally have a negative impact on the course of trading. Our medium-term outlook remains negative.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar has not shown increased volatility despite the publication of contradictory statistics from China and now continues to move around the level of 0.68. The recent increase caused by the weakening US dollar and rising commodities prices may change to negative and quotes will return to local minimums. On the other hand, we do not exclude the continued growth of quotations. Our medium-term outlook remains negative, despite the potential for continued growth in the near future.