28.09.2015 - Statements by representatives of the Federal Reserve will be in the spotlight on Monday
Currency trading and the euro. The price of euro corrected upwards in the end of last week, but started the trading session on Monday with a decline. Investors are waiting for the important statistics on the US labor market, which will be released on Friday. In addition, this week is expected a large number of statements by the Fed officials, whose rhetoric will affect expectations about the timing of interest rate increases in the United States. Today, we should pay attention to the data on personal spending and income of consumers in the US (12:30 GMT), which will support the growth of the dollar, as well as by members of the Federal Reserve. We maintain a medium-term negative outlook for the euro, but in the near future will probably see a consolidation around current levels.
Currency trading and the British pound. The price of the British pound has stabilized after a sharp decline caused by the strengthening of the US dollar and the fall of the British pound against the background of a softer rhetoric on the possibility of the Bank of England to increase interest rates and a number of downside factors that negatively affect the country's economy. Today will not be published important statistics and traders will wait for Tuesday and Wednesday, when the volatility on the market will rise after the publication of a number of important statistics. Our medium-term outlook remains negative.
Currency trading and the Japanese yen. The price of the Japanese yen is rising after a decline at the end of the week, which was due to hopes for the launch of new stimulus measures in Japan, but Prime Minister Shinzo Abe said he did not have an intention for immediate launch of measures to stimulate the economy. As a result, today we have seen the strengthening of the price of the Japanese yen, which is also supported by concerns about the worsening prospects of the Chinese economy. Our medium-term outlook remains negative.
Currency trading and the Australian dollar. The price of the Australian dollar has stabilized after a minor correction and continues to consolidate within a narrow corridor. Investors are waiting for data on the state of the industry in China. The deterioration of the situation on the commodity markets leads to an increase in the trade deficit and stimulates the Reserve Bank of Australia to lower interest rates, which will be adversely displayed on the Australian currency. We maintain a medium-term negative outlook and expect continuation of falling after the consolidation.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar continues to correct upwards, but the continuation of the current upward movement is unlikely in the near future. We expect the resumption of the downward movement of prices on the background of the weakness of the Chinese economy, the weak performance of the trade balance in New Zealand and predicted strengthening of the US dollar. Our medium-term outlook is also negative.