27.10.2015 - Traders are waiting for statistics on the UK’s GDP
Currency trading and the euro. The price of euro corrected upwards amid the weakening of the US dollar after the strong growth at the end of last week. Negative for the US currency was the news on new home sales in the US, which suddenly slowed growth to 468 million, compared with an expected 546 thousand. Investors do not hurry with the opening of new positions before the publication of the Fed's statement on monetary policy on Wednesday that will lead to increased volatility. Today, the focus will be on the news on the volume of orders for durable goods in the US (12:30 GMT), the index of house prices (13:00 GMT) and the consumer confidence index from the Conference Board (14:00 GMT). Given the expected easing of monetary policy in the euro area, we expect the fall of the euro in the medium term.
Currency trading and the British pound. The price of the British pound yesterday corrected upwards due to fixing positions after a strong decline. Statistics on the balance of production orders, which worsened to -18, vs. anticipated -8 was negatively displayed on the upward price rebound. Today, a strong influence on the mood of investors will have news for GDP growth in the UK in the third quarter (9:30 GMT). The price of the British pound is under pressure from the growth of the US dollar, the euro and the reduction of weak external demand for British goods. We expect falling prices in the medium term.
Currency trading and the Japanese yen. The price of the Japanese yen strengthened after the recent fall caused by the growth of the US dollar as well as lower demand for risky assets. Investors are trying to guess the future Fed rhetoric during the publication of statements by the US regulator on Wednesday. It is worth noting that on Friday will be released a statement of the Bank of Japan in which many expect to hear on additional measures to stimulate inflation and the Japanese economy in general. We expect the price decline of the yen in the near future and medium term, and we expect a high level of volatility in the near future.
Currency trading and the Australian dollar. The price of the Australian dollar continues to consolidate waiting for new signals to open new positions. The dynamics of trading tomorrow, will be affected by the data on the consumer price index in Australia. The decline of this indicator will be a stimulus to soften the monetary policy in the country, but according to our forecasts, inflation in the country will remain within target levels. The volatility of the Australian dollar, according to our projections will grow in the near future. Our medium-term outlook remains positive.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar continued to consolidate near the levels of the previous day despite the publication of important statistics on the country's trade balance deficit which in September totaled 1.222 billion against the forecast of 822 million. Obviously the possibility of weak statistics on the trade balance of New Zealand is priced in. In addition, investors are in no hurry to open new positions before the publication of the statement of the Reserve Bank of New Zealand on monetary policy tomorrow night. Our negative outlook remains unchanged and we recommend holding short positions.