The euro exchange rate against the dollar forex forecast for EURUSD today 08/12/2019
Euro is trying to demonstrate growth on the background of positive dynamics in the credit market, where the yield spread in Germany / US government bonds demonstrates the growth, but there are constraints. Firstly, investors are taking profits on the "Long" in gold, which is negative for the euro, as the two instruments have historically correlated. The yellow metal last week tested the six-year maximum, but was unable to consolidate above the psychological level of $ 1,500 / ounce. Secondly, Italy flaring up a new political crisis. The leader of the ruling party Mattio Salvini called for early elections. Shares of Italian banks fell in the moment of 4-5%, sharply increased insurance against default on Italian bonds. Against this background, today I do not expect the trend movement in the currency pair.
EURUSD recommendation: flat 1.1160 -1.1240
Pound to dollar forex forecast GBPUSD today 12/08/2019
UK GDP in the second quarter decreased by 0.2%, which is caught by surprise investors, who did not expect the development of a negative scenario. The volume of investment and construction showed the most significant decline over the past three years. On the one hand, it is a negative factor. On the other hand, the yield on two-year UK government bonds, which correlates with the Bank of England's rate is not updated for at least this year. Investors do not believe that the decline in GDP in one quarter may force Bank of England to lower interest rates. In this regard, today we should not expect strong sales of the British currency.
GBPUSD recommendation: flat 1.2050 -1.2120
The dollar against the yen USDJPY Forex forecast for today 12/08/2019
The course of trading will be determined by the dynamics of stock markets. US President Dwight D. Trump at the end of last week, questioned the new round of trade negotiations with China, which will be held in a month. . "We have an open dialogue Let's see if we can keep in force a meeting in September - Trump said -. If we can, great, if not, fine too." This statement makes investors nervous, and they will think several times before increasing the "Long" in the stock markets. In Asia, stock markets today, there volatile trend of the index demonstrates growth, part of the decline. This factor does not allow to conclude that the trend in this currency pair.
USDJPY recommendation: flat 105.00 -105.90