23.06.2014 - ​Data on China's industry cheered investors

The price of euro on the last trading day of the week was not able to continue its upward movement and decreased on background of fixing positions and released data. Thus, the producer price index in Germany showed a decrease of 0.2% in May, compared with an expected growth of 0.2%. At the same time, the current account surplus of Eurozone rose to 21.5 billion in April against 19.6 billion in March, and the consumer confidence index in June remained unchanged at -7. Today, the course of trading may be affected by the data on the services PMI and manufacturing PMI of the Eurozone (08:00 GMT) and the U.S. (13:45 GMT). We m

The quotes of the British pound after strong growth in the previous days, fell to the psychological mark of 1.70. The reason for the decline was the fixation of positions, as well as data on the UK government borrowing. In May, net borrowing of the public sector rose to 11.5 billion. The level of public debt is equal to 1284.5 billion pounds, or 76.1% of the national GDP. Today the Bank of England will publish a report on the state of the UK credit market. We expect further price growth of the pound in the medium term.

Japanese Yen could not continue to decline, and now began to strengthen again. The growth of the national currency was caused by the data on manufacturing PMI in Japan to 51.1 in June from 49.9 in May. This week, a rise in volatility is expected on Thursday night, after the release of data on inflation, retail sales and unemployment. On the background of ultra-soft monetary policy of the country and expectations of a stronger U.S. dollar, we predict the growth of USD/JPY in the medium term.

The price of the Australian dollar rose sharply today amid positive data from China, which is the main trading partner for Australia. Thus, the China's manufacturing PMI, from HSBC, showed an increase to 50.8, compared with an expected growth to 49.7. A figure higher than 50.0, indicates the acceleration of growth of industry. In addition, the quotations of a pair are supported by higher prices for iron ore and copper on world markets. The growth of price may continue in the near future, but we expect the resumption of the downward price movement in the medium term.

The price of the New Zealand dollar rose slightly after a downward correction on the background of positive statistics on the industry in China. Price growth was lower than the increase of the Australian dollar due to the fact that New Zealand exports to China is mainly food and Australia - raw materials, the amount of deliveries, of which depends on the state of the industry in China. Increase in volatility is expected on Thursday night, after the release of data on the trade balance of the country. We expect a decrease in price of the New Zealand dollar in the medium term due to the weakness of the bulls on the market.

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