Currency trading and the euro. The price of euro showed growth against the US dollar on the background of correction after the recent decline caused by the increased likelihood of the Fed tightening monetary policy after the statements of a number of the US central bank officials. The focus this week will be on the speech by Janet Yellen on economic symposium in Jackson Hole, which will take place on Friday. Today, it is worth paying attention to the data on new home sales in the US (14:00 GMT), as well as statistics on manufacturing PMI in the Eurozone (08:00 GMT). Our medium-term outlook remains negative and we expect increased price volatility this week.
Currency trading and the British pound. The price of the British pound showed growth against the background of fixing positions after the recent decline. In the absence of important events in the UK yesterday, traders focused on external factors such as the US dollar's decline. On investor sentiment today may affect data on the balance of production orders in the UK in August (10:00 GMT). In the longer term movement of the British currency will depend on the statistics for GDP growth in the UK and the US, which will be published on Friday. Our medium-term outlook remains negative due to the consequences of the future exit of Great Britain from the EU.
Currency trading and the Japanese yen. The price of the Japanese yen has resumed growth after a failed attempt to change the trend. The reason for the growth was the weakening of the US dollar, as well as increased interest in defensive assets from investors against the background of falling oil prices. Also today, support for the yen has become the data on the growth of the country’s manufacturing PMI in August that increased to 49.6, against the forecast of 49.5. On Friday will be published important data on inflation in the country, which will affect investors' expectations regarding the possibility of further reduction in interest rates. Our medium-term outlook remains negative, and the potential for growth declined.
Currency trading and the Australian dollar. The price of the Australian dollar corrected upwards after the recent decline caused by the weakening of the US dollar. It is worth noting that the recent drop in oil prices could not materially affect the dynamics of trading, despite the strong dependence of the Australian dollar on commodity prices. This week, the main influence on the course of trading will be external factors such as the movement of the US dollar and investors' expectations regarding the Fed’s plans on tightening monetary policy this year that may significantly change after Yellen’s speech at Jackson Hole on Friday. Our medium-term outlook remains negative.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar showed growth today after the head of the Reserve Bank of New Zealand said that there is no need for a sharp reduction in interest rates. Further movement of prices will depend on the statistics on the trade balance in New Zealand (22:45 GMT), which may be better than expected due to the improved situation on the dairy products market, which is a key export group. Our medium-term outlook remains negative and the probability of the correction remains high in the near future.