26.05.2015 - Traders will be watching the sales of new homes in the US
Currency trading and the euro. The price of euro continued to decline despite the low activity of investors, which was caused by the holiday in the US and some European countries. It is worth noting that before the euro has fallen against the background of the strengthening US dollar after the publication of statistics on the growth of inflation in the country. Moreover, Greece continues talks on debt restructuring, but in case of their failure will not be able to pay 1.6 billion euros until June 19. Today, the course of trading will be affected by the data from the US on orders for durable goods (12:30 GMT), new home sales and consumer confidence (14:00 GMT). Last week, data on the US housing market led to a fall in the euro. Our medium-term outlook remains negative and we recommend holding short positions.
Currency trading and the British pound. The price of the British pound continued to consolidate below the level 1.55 due to the holiday in the United Kingdom and the United States. The previous fall was caused by the strengthening of the US dollar and fixation of position after the strong growth of the British pound in the previous week. Today, the course of trading will be affected by the news on the balance of retail sales in the UK. Investor activity will be constrained by the expectation of the statistics for GDP growth in the UK, which will be released on Thursday. Our medium-term outlook remains negative.
Currency trading and the Japanese yen. The price of the Japanese yen continues to fall against the US dollar on the backdrop of a more positive sentiment towards the US currency. It is worth noting that the recent publication of data on Japan's GDP growth of 0.6% in the 1st quarter points to the effectiveness of the current monetary policy of the Bank of Japan, which may launch new stimulus measures. Tonight will be published the minutes of the previous meeting of the Bank of Japan. We expect a further fall in the price of the yen in the coming days, and keep the medium-term negative outlook.
Currency trading and the Australian dollar. The price of the Australian dollar has stabilized after strong fall last week, but after some consolidation is likely to continue falling. Tomorrow will be published data on the index of leading economic indicators in Australia. The main reasons for the current fall of the Australian dollar is the strengthening of the US dollar and falling of commodity prices. In addition, the policy of the Reserve Bank of Australia remains soft. The medium-term outlook for the Australian dollar is a negative and we recommend holding short positions.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar has stabilized after falling sharply due to lower activity on the market. The trade surplus of the country in April was 123 million against the forecast of 105 million. In spite of this, quotes the New Zealand currency remains under pressure of low prices on dairy products and the expectation of lower interest rates by the Reserve Bank of New Zealand to spur lending and consumption in the country. Our outlook remains negative.