24.09.2015 - The price of euro corrected within the correction

Currency trading and the euro. The price of euro yesterday corrected upwards after a significant decline in the previous days and can resume the fall after correction. Yesterday negative for the European currency was the news on the reduction of the production and service PMI in Eurozone to 52.0 and 54.0, respectively, that was 0.2 and 0.1 below expectations of analysts. The head of ECB said that the regulator needs more time to assess the causes of the slowdown in the developed countries, the fall in commodity prices and volatility in the financial markets and the decision to adopt the necessary measures to stimulate the economy. Today, it is worth paying attention to the index of business sentiment in Germany from the Ifo (08:00 GMT), the volume of orders for durable goods (12:30 GMT) and new home sales in the US (14:00 GMT). Our medium-term outlook remains negative.

Currency trading and the British pound. The price of the British pound showed small correction after the sharp fall in recent days, which was caused by the expectation of a later increase in interest rates by the Bank of England, as well as due to the strengthening of the US dollar. Today, the course of trading will be affected by the news on the number of permits issued for mortgage lending in the UK (08:30 GMT). Investors will be restrained by waiting of tomorrow's statement of the Bank of England on monetary policy. We maintain a medium-term negative outlook on the British pound.

Currency trading and the Japanese yen. The price of the Japanese yen continues to consolidate within a narrow range. The return of Japanese investors after a long weekend did not lead to an increase in volatility. The manufacturing PMI in September totaled 50.9 vs. anticipated 51.3. In addition, today was published data on the index of business activity in Japan, which in July rose by 0.2%, which is twice more than the experts' forecasts. Tomorrow investor sentiment will be affected by the news on inflation in Japan. Our medium-term outlook for the yen remains negative.

Currency trading and the Australian dollar. The price of the Australian dollar within the sustainable negative trend has reached an important level of 0.70. The price continues to be under the pressure of a soft monetary policy of the Reserve Bank of Australia, the strengthening of the US dollar, low commodity prices and fears of investors on the growth of China's economy. Our medium-term outlook remains negative, but today we can see a small correction.

Currency trading and the New Zealand dollar. The price of the New Zealand dollar corrected against the background of technical factors, but continues to be under the pressure of expectations of monetary easing and low export prices. Negative for the New Zealand dollar were also news on the country's trade deficit, which in August totaled 1.035 billion against the forecast of 875 million. Our medium-term outlook remains negative and we recommend to hold short positions.

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