Foreign Exchange Market on January 27, 2016, EUR / USD
Forex news traders today:
12.30 MSK. UK: The volume of mortgage lending by the BBA for December (previous value 44.96K; forecast 45.5K).
18.00 MSK. US housing sales in the primary market in December (the previous value of 4.3% m / m forecast 3.1% m / m).
18.30 MSK. US data on stocks of crude oil from the Ministry of Energy in January (previous value 3,979M; forecast 3,452M).
22.00 MSK. US: FOMC decision on the basic interest rate in January (previous value of <0.50% forecast <0.50%).
The euro exchange rate against the dollar Tonight EUR / USD Forecast 01/27/2016
Today igrokav euro with greenbacks in the first half of trading two reasons for the predominance of waiting "bearish."
First American Corporation in yesterday's trading pleased investors positive data for the fourth quarter.Earnings per share of companies such as Johnson & Johnson, Procter & Gamble, EI du Pont exceeded the consensus forecast, it maintained market share.
Do not leave without attention and the oil market - the two reference varieties yesterday rose 5%, it is also possible only in case of high demand for "risky assets". What is a negative factor for the euro as a funding currency.
Second, the yield on German government bonds on the bond market decreased in relation to the British and American, it reduces the attractiveness of investing in the assets of the Old World.
In the second half of trading forex players will wait for the decision of the US Federal Reserve discount rate.Taking into account the sale in the market of "black gold", and the slowdown in retail sales, the regulator can expect a moderately negative comments on short-term inflation expectations. Since the last meeting of the FED yield of two-year treasury bonds, which reflects investors' expectations for interest rates, decreased by 15 basis points, it clearly confirms the negative trend. That will put pressure on the US dollar and the Euro-currency will allow to compensate for lost ground.
Recommendations for the euro dollar: Today traders euros greenbacks for trades worth waiting for sideways trading between 1.0795 -1.0900.
The pound against the dollar today GBP / USD forecast for 01/27/2016
During trading on the forex market, traders on the sterling with bucks are three reasons to buy the pair.
First, in trading in Europe should wait for a positive report on mortgage lending by the BBA on the background of the positive trend in the labor market. PMI released by the Markit indicator for the construction industry in December, also showed growth, which confirms the positive trend. Low inflation in the UK (0.2% in 2015) contributes to an increase in the real incomes of the population, and is a positive factor for the real estate market.
Second, the yield on 10-year British government bonds rising to the German and American, it increases the attractiveness of investing in the assets of Albion, and support quotes the Briton.
Third, as noted earlier today, the Fed can expect a moderately negative comments in relation to short-term inflation expectations, it is a negative factor for the US dollar.
Recommendations for the pound dollar pair: Today, players from sterling to the dollar is worth buying a pair Buy's price cut to levels of 1.4310 / 1.4270 and a target at 1.4450.
The dollar against the yen today USD / JPY forecast for 01/27/2016
Today traders for a pair USDJPY in the first half of the day is waiting for growth against the backdrop of increasing "appetite for risk". Positive quarterly reports of US corporations returned to "bull" to the market.The growth of quotations on the stock markets and high-yield cross-rates indicates an increase of the positions carry trade, and in this regard, the yen as the funding currency №1 in the world, will be under pressure. The debt market also confirms the upward trend in the pair USD / JPY: the yield differential of US and Japanese government bonds widened. In the second half of the session can be observed prevalence of "bearish". The release of new home sales for December, can go a little worse than the consensus forecast, it will have some pressure on the currency States. According to the report, the Mortgage Bankers Association in the last month of last year, the refinancing index fell by 5.06%, amid rising mortgage rates. FOMC Meeting on December 16 raised the discount rate by 0.25%, which is reflected in the mortgage market. Mortgage is traditionally the main driver of growth in the real estate market and therefore, we can expect a decrease in the number of transactions in the primary market. Second, as noted earlier, FOMC today can not please the market participants' positive comments, which also reserves the dollar no-trump.
Recommendations for the dollar yen pair: Today, traders should wait for trade sideways 118.20 -119.30.