21.12.2015 - The New Zealand dollar increased

Currency trading and the euro. The price of euro corrected after reaching an important level of 1.08. Weak statistics on balance of payments euro area, the deficit of which amounted to 20.4 billion euros in December against the forecast of 32.2 billion euros disappointed investors and led to a short-term drop in prices of the euro. This week, investors' activity will decline before the holidays. Today, in the US will not be published vital statistics and the course of trading will affect the data on the index of consumer confidence in the Eurozone (15:00 GMT). Investors will not rush to accumulate positions ahead of tomorrow's publication of the final report on the growth of US GDP for the 3rd quarter. Our medium-term outlook for the euro remains negative.

Euro Technical Outlook

Currency trading and the British pound. The price of the British pound has stabilized after a decline caused by the Fed raising interest rates, which strengthened the US dollar. At the moment, there is a possibility of correction in prices due to technical factors. Today, little impact on the course of trading will have data on the balance of retail sales in the UK (11:00 GMT). On Wednesday will released a final report on GDP growth in the UK in the third quarter. Our medium-term outlook remains negative despite the current probability of price correction.

Currency trading and the Japanese yen. The price of the Japanese yen has slowed the decline today after a sharp fall on Friday, caused by the statement of the Bank of Japan, which announced about the correction of the asset purchase program, the volume of which remained at 80 trillion yen in the year, but the Japanese regulator intends to buy government bonds with maturities up to 12 years against bonds with maturities up to 10 years earlier. Today was published the data on the index of business activity in Japan, which in October rose by 1.0%, which is 0.1% better than expected. We anticipate the resumption of the fall of the yen against the dollar and maintain the medium-term negative outlook.

Currency trading and the Australian dollar. The price of the Australian dollar resumed its decline after a strong rebound yesterday. Low commodity prices and the strengthening of the US dollar are the main factors that put pressure on quotations of the national currency of Australia. Activity of investors this week will be minimal due to the long weekend. The dynamics of trading will be affected by movement of the US dollar. We maintain a medium-term negative outlook, but do not rule out the resumption of upward correction with the potential for growth to 0.73.

Currency trading and the New Zealand dollar. The price of the New Zealand dollar continues to grow within the upward trend after the recent price correction. Support for the national currency of the country today was the data on the index of consumer confidence in New Zealand, which rose to 110.7 in Q4, against 106.00 previously. On the other hand the number of tourists in the country increased to 11.1% versus 8.9% previously. It should be noted that the tourism industry is an important component of the country's GDP. We expect continued growth today, but maintain a medium-term negative view.

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