28.04.2016 - The central banks of the USA, Japan and New Zealand did not change interest rates
Currency trading and the euro. The price of euro showed a strong rise in volatility after yesterday was published a statement by the Federal Reserve on monetary policy. Thus, interest rates remained at the levels of 0.25-0.50%, and it was noted that we should only expect a gradual increase in interest rates. In addition, the in the Fed remained concerns about the low level of inflation, the state of the global economy and financial system. Today, the volatility on the markets will also grow after the release of US GDP growth report for the 1st quarter of this year (12:30 GMT). Our medium-term outlook for the euro remains negative, but growth may continue in the near future.
Currency trading and the British pound. The price of the British pound corrected down after showed strong upward movement in the previous days. It is worth noting that yesterday was published preliminary data on GDP growth in the 1st quarter, according to which the British economy expanded by 0.4%, against 0.6% in the previous period. Today, little impact on the dynamics of trading will have data on the index of house prices in the UK (06:00 GMT). We forecast a drop in prices in the near future amid speculation about the possible exit of the country from the European Union.
Currency trading and the Japanese yen. The price of the Japanese yen showed gains after the Bank of Japan decided to maintain the monetary policy settings unchanged. Earlier quotes have increased against the background of an expected decline in credit interest rates to negative values from the current level of 0.00%. It is worth noting that the volume of industrial production in Japan rose by 3.6% in March, which is 0.7% better than expected, but retail sales fell by 1.1% for the year, versus growth of 0.4% in the previous month. Tomorrow in Japan is a day-off. The current strengthening may continue in the near future, but the medium-term outlook remains negative.
Currency trading and the Australian dollar. The price of the Australian dollar started to correct upwards after the recent substantial decline. Investors have decided to fix positions after the fall caused by the news of the fall of the consumer price index to -0.2% in the first quarter, which may lead to a lowering of the RBA interest rate. The expected correction on commodity markets will also have a negative impact on the price of the Australian dollar. Our medium-term outlook remains negative and we expect a drop in prices in the coming weeks.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar rose sharply after the Reserve Bank of New Zealand decided not to cut interest rates from the current 2.25%. At the same time, the regulator confirmed its readiness for monetary easing if necessary and noted that the current price of the national currency is too high. According to our estimates, there is a high probability of falling prices in the near future.