The euro dollar forecast EUR / USD pair today 23/10/2018
Celestial eve of the announced package of measures aimed at stimulating economic growth. Many investors in the past year, often criticized the Chinese government for a reduction in the rate of GDP growth, and apparently the party has decided to rectify the matter. For the euro is a positive factor, as the euro zone economy and China has a strong relationship. The news was also supported by demand in the segment of industrial metals as investors actively bought copper, zinc, palladium, as Beijing imposes high demand for raw materials. The uptrend in the metals market has traditionally puts pressure on the dollar, as the raw materials and the US currency traded in different directions.
EUR / USD recommendation: Buy 1,1450 / 1,1430 and take profit 1,1540.
Pound dollar forex forecast pair GBP / USD today 23/10/2018
The course of trading in the past two days is determined solely by the policy. If we receive good news on Brexit, the pound increases and vice versa. On Monday it was reported again about the threat of changing the leader of the Conservative Party - T. Mae may dismiss this week. Investors are skeptical about such an outcome, because they believe that the risks are increasing at such a difficult moment in the history of Britain. The yield on 10-year UK government bonds falls in relation to their counterparts in the United States and Germany, which indicates the presence of a greater number of sellers in the market of the pound. Can we now confidently sell the pound? In my opinion, no. And the whole thing again in politics - the most authoritative representatives of the Conservative Party said yesterday that T. Mae today / tomorrow may announce an agreement with ES Brexit on key issues. In this case, the pound will demonstrate strong growth! What it is: an attempt to reassure the public and investors, or really have such an agreement? Hard to say, because we're not in the United Kingdom and do not know all the vicissitudes of this high-profile case. It is better to wait for clarification of the situation, the more it will happen in the near future.
GBP / USD recommendation: flat 1,2920-1,3020.
Dollar yen forecast pair USD / JPY today 10/23/2018
Buy long positions in USD / JPY pair, for two reasons. First, the rapid growth of the Chinese stock market is to provide support to the rest of the stock markets, which is positive for the pair, as it is strongly correlated with the equity markets. The Chinese Shanghai Composite index rose on Monday at the fastest pace since March 2016 on news that Beijing is ready to take measures to support weakens GDP. China's Ministry of Finance announced a preliminary plan to reduce the tax on personal income, providing for the possibility of deductibility of medical expenses, education, payment of interest on a mortgage. Second, the debt market yield spread on 10-year US and Japanese government bonds demonstrates the growth, which is also positive for the pair USD / JPY.
USD / JPY recommendation: Buy 112,40 / 112,20 and take profit 113,10.