28.12.2015 - Weak data on industrial production has led to a drop in the Japanese Yen
Currency trading and the euro. The price of euro is consolidated near the previous close due to low activity of investors after Christmas. Many traders are on vacation and trading volumes in the coming week will be minimal. Today will not be published important macroeconomic data. We maintain a medium-term negative outlook for the euro, and after the New Year may see the resumption of the negative dynamics of prices.
Currency trading and the British pound. The price of the British pound has stabilized after recent gains. Today we do not expect to see a directional price movement due to the holiday in the UK and lower activity in the United States. It is worth noting that this week in the UK will not be published important data and decline in the downward trend is likely to continue. Our medium-term outlook for the British pound remains negative.
Currency trading and the Japanese yen. The price of the Japanese yen showed a decline in the beginning of the trading week in connection with the publication of weak data on retail sales, which fell in November by 1.0%, compared with the same month last year. In addition, the volume of industrial production in the country in November, compared to October fell by 1.0%, which is 0.6% worse than expected. Industrial production is a key indicator for the yen. Given the recent strengthening of the national currency and weak Japanese data, we forecast a fall in the yen in the near future and in the medium term.
Currency trading and the Australian dollar. The price of the Australian dollar has stabilized after strong growth due to the low activity of investors after Christmas. This week, in the country will not be published important statistics and dynamics of trading will be reduced due to the holiday period. We maintain a negative medium-term outlook for the Australian dollar, but do not exclude continued upward trend in the coming days.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar continues to consolidate near the highs of the month. Festive period leads to lower investor activity, which according to our forecasts will resume after the New Year. This week will not be published important macroeconomic data. We maintain a negative medium-term outlook for the New Zealand dollar and wait for the signal to sell.