26.10.2015 - Price of euro is corrected after a strong decline
Currency trading and the euro. The price of euro corrected upwards today after a steady decline in the last week, caused by the statement of the head Mario Draghi to revise the parameters of monetary policy at the next ECB meeting on December 3rd. As a result, we expect the expanding of the program of quantitative easing or reduction of the deposit rate from the current level of -0.2%. Lowering interest rates in China by 0.25% also supported the demand for the dollar. Today, a strong influence on the course of trading will have news on the index of business confidence in Germany (09:00 GMT) and new home sales in the US (14:00 GMT). Our medium-term outlook remains negative, but the correction may continue today.
Currency trading and the British pound. The price of the British pound is corrected upwards after a strong decline last week, caused by the fall of the euro and the strengthening of the dollar. Today, the dynamics of trading will be affected by the news on the number of permits for mortgage lending in the UK (09:30 GMT) and the balance of production orders in the United Kingdom (11:00 GMT). Investor activity will be constrained by the expectation of tomorrow's publication of data on GDP growth in the UK in the third quarter, which is expected to reach 0.6%. The current correction may continue today, but our medium-term outlook remains negative.
Currency trading and the Japanese yen. The price of the Japanese yen increases today after strong decline last week. Positive impact from lower interest rates in China 0.25% leads to the strengthening of the Japanese currency, which is heavily dependent on China. Quotes are likely to consolidate around current levels before the publication of the statements of the Fed and the Bank of Japan on monetary policy, which will be held respectively on Wednesday and Friday. The volatility this week, will be high and we maintain a medium-term negative view on the Japanese yen.
Currency trading and the Australian dollar. The price of the Australian dollar continues to consolidate, and the amplitude of price fluctuations is gradually reduced, indicating a strong price movement after the current consolidation. Wednesday will be published important data on consumer price inflation in the country and the Fed's statement on monetary policy, which may be the catalyst for the beginning of a new strong price movement. Our medium-term outlook remains negative and we are waiting for the signal for opening positions.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar shows an increase within the correction at the beginning of this week. Today, a strong influence on the course of trading will have news on the trade balance of the country, which according to our forecasts will lead to lower prices. At the same time it is worth noting that investors' activity will be constrained by the expectations of the statements of the Reserve Bank of New Zealand and the Fed on monetary policy, which will lead to a strong price movement. Our medium-term outlook remains negative and we are waiting for the signal to sell.