The euro dollar forex trading forecast for EURUSD today 05/29/2019
Italian public debt problems again hamper the euro show a good upward trend. The European Commission is considering fines for violating Rome for the fiscal requirements. All countries of the eurozone must have a budget deficit not exceeding 3% of GDP, Italy is at a dangerous level and rate could reach 3.4% at the end of the year. Italy made a warning, but the political leaders from the peninsula are willing to enter into conflict with Brussels. The yield spread on 10-year German government bonds / Italy peaked over the past three months, which is a negative factor for the euro. In this case, a strong drop in prices of the single European currency should not be expected today as rising in price of oil will support the euro, due to the direct correlation EURUSD and BRENT. Black Gold shows good uptrend on news from China and India, who had stopped to buy oil from Iran, after the tightening of US sanctions against the Islamic Republic. BRENT can now test the psychological level of $ 70 / barrel.
EUR / USD recommendation: flat 1.1140 -1.1230
Pound Dollar GBPUSD forex forecast for today 29/05/2019
At the pound now there is both good news and bad news. Let's start with the pleasant: the upward trend in the market of black gold will support the British currency, because the market there is a strong correlation between GBPUSD and BRENT. Iranian establishment said yesterday that he sees no prospects for negotiations with the United States. In my opinion, relations between Tehran and Washington in the near future will only get worse, as Iran remains without its main clients, whom he has long been selling hydrocarbons. Deprived of a significant amount of foreign currency earnings Tehran "against the wall". Once the Islamic Republic sees no point in the negotiations, then it will act differently. Growth geopolitical tensions in the Gulf will push up oil quotes. Against this background, BRENT will test the level of $ 70 / barrel.
The bad news - it is a political crisis in the UK. The leaders of the parliamentary and extra-parliamentary factions still can not agree on BREXIT project. The situation is reminiscent of the well-known Krylov's fable "The Swan, Pike and cancer" - each fighting for its rating and want to be №1. One participant of the battle is already lost his nerve, and he, or rather she, announced his resignation on June 7. Political risks make investors avoid investing in the British currency - according to the CFTC funds increased sale pound to two-month high.
GBPUSD recommendation: flat 1.2622 -1.2710
Dollar yen USDJPY Forex forecast for today 29/05/2019
Investors this week are showing interest in Asian stock markets, which have a positive impact on the cost of a pair of USDJPY, which has a strong correlation with the equity markets. The increased interest is observed to Chinese shares, as is expected to increase the share of China in the MSCI index. Traders are hoping that the US and China on the G-20 summit in late June, will be able to conduct successful negotiations, which will allow both parties to conclude a bargain.
USD / JPY recommendation: Buy 109.14 / 109.00 and take profit 109.70
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