21.09.2016 - Investors are waiting for the application Janet Yellen
Currency trading and the euro. The price of euro fell against the dollar on the background growth of speculations with respect to today's Fed rhetoric. The likelihood of higher interest rates in the United States is minimum in September, but the Fed’s chairwoman Janet Yellen may hint at tightening monetary policy until the end of this year, during a press conference (18:30 GMT). In addition, a strong influence on the dynamics of trading will have the Fed's forecasts for the country's economy, which will be published simultaneously with the decision on interest rates (18:00 GMT). We anticipate strong price movements on the market and keep medium-term negative outlook for the euro with potential targets at 1.0700 and 1.0550.
Currency trading and the British pound. The price of the British pound fell following the euro, as well as on the background of a sharp decline in the yields of British 10-year Treasury bonds. The main influence on the course of trading today will have news from the US, but we should also pay attention to the Bank of England's quarterly report on the state of the economy (11:00 GMT). Stronger macroeconomic indicators in the UK are reducing the likelihood of further reduction in interest rates of the Bank of England, which is positive for the currency. According to our estimates, today we will see strong movements on the market and the fall of the British currency is likely to continue in the medium term.
Currency trading and the Japanese yen. The price of the Japanese yen showed a strong rise in volatility today in connection with the statement of the Bank of Japan on monetary policy. Thus, the country's central bank has left its key interest rate unchanged at 0.1%, and has kept the benchmark consumer price inflation at 2.0%. It should be noted that previously have been published news on the trade balance of the country, according to which exports fell by 11 consecutive months and declined by 9.6% compared to the same period last year in the country. We expect to maintain a strong level of volatility, and expect the fall of the yen against the US dollar in the medium term.
Currency trading and the Australian dollar. The price of the Australian Dollar is consolidating amid expectations of news on the US Fed’s decision on monetary policy in the country. Strong attention investors will pay the price movements on commodity markets, which are the main export group. The decline in oil prices may continue, that will pull the prices for other commodities down. Tomorrow will speak the head of the Reserve Bank of Australia, which can also support high volatility. Our medium-term outlook remains negative and we are waiting for strong movements today and tomorrow.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar showed a decline amid weak dairy auction results, according to which the price of milk powder increased by only 1.7% against the forecast of 9.0%. We recall that the dairy products are the key to the country's exports. In addition, the growth of a number of tourist in the country totaled only 9.0% for the year versus 14.4% in the previous period. Investors do not hurry up with action before the statements of the Reserve Bank of New Zealand on monetary policy (21:00 GMT), although we do not expect a change in monetary policy settings at this time. Our medium-term outlook remains negative and we expect a strong movement in the coming days.