Currency trading and the euro. The price of euro showed a drop in the beginning of the trading week, which was caused by weak data on manufacturing and service PMI of the Eurozone, which fell to 53.0 and 51.0 against 52.3 and 53.6 in January. In addition, a negative for the euro became speculations about a possible exit of Great Britain from the European Union structure. Today, the dynamics of trading will affect the preliminary data on GDP growth in Germany (07:00 GMT), new home sales and consumer confidence index in the US from the Conference Board (15:00 GMT). We expect a continuation of the negative dynamics of the euro in the near future due to the increasing interest of investors in future ECB meeting in March, where can decide on additional stimulation of the Eurozone economy. Our medium-term outlook also remains negative.
Currency trading and the British pound. The price of the British pound showed a strong decline, reaching its lowest level in a year, amid investors’ concerns about the country's possible exit from the European Union, which will reduce the country’s ratings and negative consequences for the economy. A referendum on this issue will be held on June 23 and until then, we will see strong price fluctuations in one direction or another. Today, the dynamics of trading will impact the rhetoric of head of the Bank of England during speech in the country's parliament (10:00 GMT). The fall of the British pound prices may continue in the near future, but its potential is limited.
Currency trading and the Japanese yen. The price of the Japanese yen continued to strengthen against the background of weak statistics on the manufacturing PMI in the country, which fell to 50.2 in February, according to a preliminary report, against 52.3 in January. In addition, investors are still concerned about the situation on the Chinese stock markets. Investors are waiting for Friday's publication of the preliminary data on the US GDP growth in the 4th quarter report and inflation data in Japan. Our medium-term outlook remains negative and we expect a strong decline in prices.
Currency trading and the Australian dollar. The price of the Australian dollar rose after certain oil price rise, which has a positive effect on the Australian currency. Further growth potential in the near future is limited due to the expectation of the resumption of the negative dynamics of commodity prices and investors' concerns about the Chinese economy, which continues to reduce the volume of imports. This week will not be published important statistics in Australia and the price movement will depend on the dynamics of the US dollar and commodity prices. Our medium-term outlook remains negative.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar has grown along with the Australian currency against the background of positive dynamics in commodity markets. Further growth is limited and more likely scenario according to our forecast will be the continuation of price consolidation after the completion of which we will see a strong price movement. Investors are waiting for the important data on the trade balance of the country, which will be released on Thursday night. Our medium-term outlook remains negative.