15:30 MSK. US Producer Price Index for June.
The euro \ Dollar Forex EURUSD forecast for today 12/07/2019
In the published minutes of the last meeting of the ECB there is a high risk of a slowdown in economic growth and reduce inflationary expectations. If the situation does not improve in the coming months, the ECB is ready to cut interest rates and increase bond purchases under the QE program. The next meeting of the ECB will be held July 25 and now, many investors are waiting for signals from the central bank to stimulate the economy. Several years ago, the ECB actively stimulate the economy, and then the process has caused a strong drop in value of the euro. What will happen this year? Now, there is one major difference from the period 2014-2018 GG Whereas the ECB to stimulate the economy, and the Fed on the other hand, raised interest rates. Now the ECB and the Fed are ready to stimulate the economy. Against this background, we should not look for parallels and speak clearly about the new downtrend for the single European currency. Currently the yield on 2-year government bonds of Germany and US central banks lower interest rates by 0.72% and 0.53% respectively. Thus, both the euro and the dollar are now the underdogs. It is likely a strong trend in EURUSD today, we do not see. Alternatively, it is advisable to open positions Buy # DAX30 and # SP500, as low interest rates always contribute to the growth of stock indices. Worth waiting for growth # DAX30 to 12500 and # SP500 to 3020. because low interest rates always contribute to the growth of stock indices. Worth waiting for growth # DAX30 to 12500 and # SP500 to 3020. because low interest rates always contribute to the growth of stock indices. Worth waiting for growth # DAX30 to 12500 and # SP500 to 3020.
EUR / USD recommendation: flat 1.1235 -1.1305
Pound \ usd forex forecast pair GBPUSD today 12/07/2019
Open Buy position for two reasons. First, the yield spread UK / US government bonds demonstrates the growth, which has a positive impact on the cost of the British currency. Secondly, the continuation of the bullish rally in the oil market will provide additional support to the pound because there is a correlation between GBPUSD and #BRENT. Now the oil market is heavily influenced by the following events: a hurricane in the Gulf of Mexico, with the pipeline problems in Russia Friendship and geopolitical tensions in the Strait of Hormuz, which Iran warships tried to block British oil tankers. Investors should wait for the growth of oil prices to the level of 67.80.
GBP / USD recommendation: Buy 1.2529 / 1.2510, and take profit 1.2595
Dollar \ yen forex forecast pair USDJPY today 07/12/2019
Today, two factors can be identified that will influence the course of trading. Firstly, this reduction of quotations of gold, which traditionally has a positive effect on the cost of the USDJPY. The precious metal has stabilized in the psychological level of $ 1,400 / ounce and now gold is not enough "drivers" to continue to grow. Second, the yield of two-year government bonds is still below the level of 2%, which will provide support for the US stock market. Dow Jones Industrial Average index on the eve of the first time in history has overcome a mark 27 000! USDJPY pair has a strong correlation with the US stock market, and against this background, it is possible to expect growth of pair of quotes.
USD / JPY recommendation: Buy 108.00 / 107.75 and take profit 108.50