23.03.2016 - Terrorist attacks in Brussels weakened the British pound
Currency trading and the euro. Price of euro showed decline after the terrorist attack yesterday in Brussels, which killed 34 people. Responsibility for the explosions at the airport and the metro of Brussels has taken an Islamic state. These events have increased investor caution and have a negative impact on the tourism business in the Eurozone. Investors are waiting for news on the growth of US GDP for the 4th quarter. Activity in the near future will be reduced in connection with the celebration of Easter. On the dynamics of trading today will affect the data on new home sales in the US (14:00 GMT). We forecast a drop in euro prices in the medium term, and do not exclude the short-term price rebound in the near future.
Currency trading and the British pound. The price of the British pound yesterday showed a strong decline after the terrorist attacks in Belgium, which strengthened the position of opponents of the United Kingdom's membership in the EU. The issue of membership will put pressure on the price of the pound in the coming months. Yesterday was published the information on consumer inflation in the country, which remained at 0.3%, which is 0.1% less than expected. This fact also negatively influenced the course of trading. Despite the possibility of price correction after yesterday's decline, we keep a medium-term negative outlook on the pound.
Currency trading and the Japanese yen. The price of the Japanese yen continued its decline against the US dollar on the background of fixing positions after a significant strengthening since the beginning of the year, as well as weak macroeconomic data, which puts pressure on the yen and increase the likelihood of further stimulus from the Bank of Japan. On Friday was released statistics on inflation in Japan, as well as a final report on the growth of the US economy in the 4th quarter. Our medium-term outlook for the yen is a negative.
Currency trading and the Australian dollar. The price of the Australian dollar continues to consolidate before a holiday in Australia tomorrow. The strong influence of the price still has the dynamics in commodity markets and the US dollar's movement. The potential for further growth in the Australian currency is limited and we will likely see a change of local upward trend to the negative soon. Our medium-term outlook remains negative.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar continued to decline against the strengthening of the US dollar and the recent publication of weak statistics on tourism in the country. Tomorrow, in New Zealand is the day off, but the dynamics of trading will affect the trade balance data of the country. We forecast a drop in prices in the near future and medium term against the backdrop of weak statistics on trade and expectations of monetary policy easing of the RBNZ.