The euro \ Dollar Forex EURUSD forecast for today 05/07/2019
Traders today - three reasons to buy EUR / USD
First, the credit market yield differential on 10-year German government bonds and US renews the maximum in the last five weeks, indicating a continuation of the short-term uptrend for the euro.
Second, there is the demand for energy, which is also positive for the euro, because of its direct correlation with oil BRENT. Investors buy oil to a decline in raw material supplies from Venezuela, Iran and Russia (with the pipeline problems Friendship).
Third, the central bank of China announced monetary easing: the required reserve ratio for small and medium-sized banks will be reduced from 11.5% to 8% in the period from 15 May to 15 July. Such news from China has always had a positive impact on the value of the euro.
EURUSD recommendation: Buy 1.1195 / 1.1175, and take profit 1.1251
Pound to dollar forex forecast pair GBPUSD today 07/05/2019
The British currency during the day may show price growth due to the positive dynamics of the credit and commodity markets. The credit market yield spread on 10-year UK / US government bonds demonstrates the growth that will support the pound. On the commodity market, we are seeing demand for oil and copper, which is positive for the British currency, as there is a direct correlation between the instruments. According to Reuters data, in April, OPEC production fell to its lowest level since 2015 - the final figure 30.23 million barrels / day. This is 90,000 b / d less than in March. In May, expected an even greater reduction in background of geopolitical tensions in Iran.
GBPUSD recommendation: Buy 1.3105 / 1.3085, and take profit 1.3158
Dollar against the yen forex forecast pair USDJPY today 05/07/2019
Donald Trump raises the stakes in trade talks - so you can characterize his statement that the United States are ready to raise tariffs on Chinese goods from 10 May. A new round of negotiations will start tomorrow in Washington - the Chinese delegation will not cancel anything (although there were such rumors on Monday morning) and will arrive in the US capital at exactly the appointed time. The Chinese want to enter into a trade agreement with Trump, the American president of the same desires, but wants to do it faster. Therefore, the threat went through Twitter. Stock markets recover their losses, after the opening of trading on Monday with a gap down and for the USDJPY pair is a positive signal, since this pair is heavily dependent on investor sentiment in the stock markets.
USDJPY recommendation: Buy 110.50 / 110.30 and take profit 111.00