23.07.2015 - The Reserve Bank of New Zealand cut interest rates by 0.25% to 3.00%

Currency trading and the euro. The price of euro showed growth against the background of positive news from Greece, where the Parliament voted for a second list of reforms required for a third bailout package about 86 billion euros over three years. Support for the US dollar yesterday was the data on the growth of sales on the secondary market to 5.49 million in June, compared with an expected 5.40 million. Today, the course of trading will be affected by the data on the unemployment rate in Spain (07:00 GMT), the index of consumer confidence in the Eurozone (14:00 GMT) and the number of initial unemployment claims in the United States (12:30 GMT). Our medium-term outlook for the euro remains negative and we recommend holding short positions.

Currency trading and the British pound. The price of the British pound continues to consolidate near the levels 1,5550-1,5650. Yesterday, the Bank of England voted to keep the current settings of monetary policy, but experts admit the possibility of the beginning of the rise in interest rates early next year. Today, the course of trading will be affected by the data on retail sales and the number of permits issued for mortgage lending (08:30 GMT). Our medium-term outlook remains negative, but growth may continue in the near future.

Currency trading and the Japanese yen. The price of the Japanese yen fell against the dollar after the correction during the previous trading session. Today has been published statistics on the country's trade balance deficit which totaled 0.25 trillion yen, in line with analysts' expectations. Tomorrow a strong influence on the course of trading will have the data on the country's manufacturing PMI, which will support the growth of quotations of the yen. Despite the possibility of growth, we forecast a decline of the Japanese currency due to expectations of tighter monetary policy.

Currency trading and the Australian dollar. The price of the Australian dollar decreased sharply after upward correction caused by the weakening of the US dollar. Today, the course of trading was influenced by the news on the index of business sentiment in the business community of Australia, which rose to 4 in the second quarter versus 0 in the previous period. The main factors that put pressure on the price of the Australian currency remain low iron ore prices and the strengthening of the US dollar. Tomorrow, the dynamics will depend on the data on the manufacturing PMI in China. We expect a further decline of the Australian dollar in the medium term and recommend holding short positions.

Currency trading and the New Zealand dollar. The price of the New Zealand dollar strengthened after the Reserve Bank of New Zealand cut interest rates by 0.25% to 3.00%. The move was expected. Some experts forecasted a decline in interest rates by 0.50%. At the same time, the head of the Reserve Bank of New Zealand reported on the probability of further reduction in interest rates due to low inflation and weakening growth prospects of the economy. Tomorrow will be published statistics on the trade balance of the country, which traditionally leads to an increase in volatility. Our medium-term outlook remains negative and we recommend holding short positions.

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