24.12.2015 - Activity on the market has fallen before Christmas
Currency trading and the euro. Price of euro corrected up after strong decline previously caused by the strengthening of the US dollar. Yesterday was published a number of important statistics from the US. Thus, the volume of orders for durable goods in November, has not changed, despite the forecast of a reduction of 0.6%, personal income and consumer spending rose by 0.3%, while sales of new homes rose by 490 thousand, which was less than the forecast of 507 thousand. Strong support for the dollar were also news on the growth of the index of US consumer confidence to 92.6 in December, which is 0.8 more than the forecast. Today in Germany is the day off. In the United States will be published statistics on the number of initial unemployment claims (13:30 GMT). Activity on the market greatly decreased due to the long weekend in Europe and North America in connection with the celebration of Christmas. We maintain a medium-term negative outlook for the euro.
Currency trading and the British pound. The price of the British pound yesterday showed a strong movement against the publication of conflicting macroeconomic data. Thus, GDP growth in the third quarter was revised up to 0.4% versus 0.5% previously, but the positive balance of payments statistics for the UK was able to neutralize the negative effect. Thus, the current account deficit for the third quarter was 17.5 billion pounds, which is much better than the forecast of 21.3 billion. Our medium-term outlook for the British currency remains negative and we look forward to low activity in connection with the celebration of Christmas.
Currency trading and the Japanese yen. The price of the Japanese yen continues to rise on news of the approval of the state budget by the Japanese Cabinet of Ministers. In addition, positive for the Japanese currency was the weakening of the US dollar against other major currencies due to the fixation of positions before the weekend. We recall that yesterday in Japan was a day off and tomorrow American investors will celebrate Christmas. In this regard, we expect low activity. The difference in monetary policy of the Bank of Japan and the Federal Reserve is the main factor for saving of the negative outlook for the yen.
Currency trading and the Australian dollar. The price of the Australian dollar resumed its growth after a slight correction. The main reason for the increase was the rise in oil prices, which supported the commodity currencies like the Australian dollar. Today in Australia is day off and activity on the market is low. We maintain a medium-term negative outlook, but do not exclude the continuation of upward correction in the near future.
Currency trading and the New Zealand dollar. The price of the New Zealand Dollar corrected due to the decrease of the US dollar. It should be noted that New Zealand had the day off. Activity on the market declines. Support for the quotes of the national currency has been the growth of the Australian dollar. The growth potential is greatly reduced, and we maintain a medium-term negative outlook.