Foreign Exchange Market Forecast January 26, 2016, EUR / USD
Forex traders in the news today:
13.00 MSK. United Kingdom: The hearing of a special committee of the Treasury.
18.00 MSK. US consumer confidence indicator in January (the previous value of 96.5, forecast 96.6).
Today, the euro against the dollar EUR / USD forecast for 01/26/2016
The indicator IFO, the data which came out yesterday, dropped to its lowest level in eleven months, the euro is a negative factor. This indicator is closely correlated with the dynamics of GDP in Germany, the foreign exchange market for the first wake-up call.
The slowdown in economic growth in Germany, the locomotive of the euro zone is always painful perceived by traders market Forex. As noted in the release IFO: "I began with an unpleasant surprise for the German economy." To date, the worst feeling sectors of construction and industry. In manufacturing the business climate index fell to a 12-month low. Rising pessimism recorded in industries such as mechanical engineering and the automotive industry, mainly due to lower exports. America in the second half of trading, investors can please positive from Conference Board. The indicator of consumer confidence from the University of Michigan in January came to fresh 6-month high, amid growing expectations of real incomes. At the end of 2015 the growth of average earnings was 2.5%, with inflation of 0.7%. Thus, the real incomes of the population increased by 1.78%, while in 2014 the real incomes increased by 0.99%. Positive data in the second half of the trading support demand for greenbacks. Do not leave without attention and the dynamics of the demand for "risky assets". The world's leading stock markets closed Monday in the "red zone", but it was a moderate decrease in quotations, and it is regarded as a correctional movement after strong growth last week. Today the stock markets is likely to be the growth of quotations that will put pressure on the euro as a funding currency.
Recommendations for the euro dollar: Today forex players for the euro is to sell an American couple Sell on growth rate to levels 1.0850 / 1.0875 and a target at 1.0790.
The pound against the dollar today GBP / USD forecast for 01/26/2016
British Buyers today can take a break, and it is likely there will be a gradual depreciation of sterling in London trading.
One reason, in the midst of trading in Europe, made by the head of the Bank of England Governor Mark Carney during the hearing of a special committee of the Treasury, which is difficult to expect positive comments.Slowdown in average earnings, together with falling prices for oil help to reduce the short-term inflation expectations. Strengthening the European currency to the British in 2015 for putting strong pressure on the industry of Albion. Although not all bad in the United Kingdom. The unemployment rate dropped to a mark of 5.1% and sterling over the past two months, the euro depreciated by 7.5%, this creates a positive foundation for the second quarter of this year.
The second reason for the profitability of British 10-year government bonds in the bond market decreased in relation to the German and American, which reduces the attractiveness of investments in assets England.
The third reason, as mentioned above, investors are now able to report positive to please States Conference Board, a short-term support of the US dollar quotes. Now rely on strong sales Briton is likely not worth it, because last Friday the forex market has ignored the negative news background around the UK. This negativity can ignore the second time. Against this background, should reap the smooth devaluation of the pound the dollar, which can be seen by traders as an opportunity to build long positions at attractive levels.
Recommendations for the pound dollar pair: Today traders pound dollar pair is worth waiting for sideways trading between 1.4190 -1.4290.
The dollar against the yen today USD / JPY forecast for 01/26/2016
Forex traders have a dollar to the Japanese currency in trading today, there are two reasons to build up long positions.
The first reason, the positive data from the US on the CB consumer confidence amid rising real incomes, are now able to please market participants. The growth rate of real income peaked in the last nine years, with low unemployment (5%) contribute to the growth of consumer optimism.
The second reason: the stock markets today are likely to be dominated by buyers, it will put pressure on the yen as a funding currency. Although the bond market has been declining yield differential of US and Japanese government bonds, it is not possible today to count on strong growth in prices.
Recommendations for the dollar yen pair: Today, the players of the dollar yen pair is worth buying a pair Buy's price cut to levels of 118.35 / 118.00 and 119.15 at Target.