22.05.2015 - The growth of retail sales in the United Kingdom supported the British pound
Currency trading and the euro. The price of euro continued to consolidate around the level of 1.1100 amid uncertainty of investors about future price movements. Thus the statistics on sales of homes on the secondary market United States, the number of which fell to 5.04 million in April, against expected growth to 5.24 million, weakened the US dollar. At the same time, the consumer confidence index in the euro area fell by 1 point to -6. Investors' attention is drawn to the EU summit in Riga, at which will be discussed the Greek crisis. We recall that in June, the country may default in the event of the failure of negotiations on restructuring the country's debt. Today, it is worth paying attention to statistics on the growth of Germany's GDP in the 1st quarter (6:00 GMT), the consumer price index in the US (12:30 GMT) and the speech of the ECB President (13:30 GMT) and the head of the Fed (17:00 GMT). Our medium-term outlook for euro remains negative due to the impact of quantitative easing in the Eurozone.
Currency trading and the British pound. The price of the British pound showed steady growth in connection with the release of strong statistics on retail sales in the country, which in April unexpectedly showed an increase of 1.2%, which is 0.8% better than analysts' expectations. We recall that in March, the index decreased by 0.7%. Today, the dynamics of prices will depend on the rhetoric of the speech by Bank of England Governor Mark Carney (13:30 GMT). Our medium-term outlook for the British pound remains negative due to the expectation of future pressures on the weak euro currency quotes. At the same time, the growth of many macroeconomic indicators has stopped.
Currency trading and the Japanese yen. The price of the Japanese yen strengthened against the background of a slight weakening of the US dollar, after the publication of weak statistics on home sales on the secondary housing market of the country. At the same time, the Bank of Japan has left monetary policy settings unchanged and amount of asset purchases remain at 80 trillion yen per year. The Bank of Japan noted sustainable consumption and zero inflation expectations in the near future due to low energy prices. Our medium-term outlook for the yen remains negative and we look forward to its further decline.
Currency trading and the Australian dollar. Australian dollar price corrected upwards due to the weakening US dollar. Support for the national currency of Australia were also news on the growth of the index of leading economic indicators in China by 1.1% in April, against an increase of 0.5% in March. Dynamics of prices of the Australian dollar is still strongly dependent on the dynamics of prices for raw materials and according to the Reserve Bank of Australia, the price of the currency will decline in the future due to the low prices of iron ore, copper and other export commodities. We maintain a medium-term negative outlook for the Australian dollar.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar shows strong growth after a strong decline in the previous days. Support for the national currency of New Zealand yesterday has become the country's Treasury forecasts about the future rise in prices for dairy products in the second half of this year. We recall that dairy products are the main export item of the country and falling prices for it, had negative impact on the quotes recently. We maintain a short-term negative outlook, but likely will see continued growth in prices today.