Foreign Exchange Market Forecast November 23, 2015 EUR / USD
Forex traders note the news on:
Japan bank holiday, Labor Thanksgiving Day.
11.30 MSK. Germany: PMI in the manufacturing sector in November (the previous value of 52.1, forecast 52.2).
18.00 MSK. US housing sales in the secondary market in October (the previous value of 5,55M; forecast 5,39M).
The euro exchange rate against the dollar EUR / USD forecast today 11/23/2015
On the first trading day of the week, in early trading forex players to pay attention to the release of Markit Economics on the business climate in the manufacturing sector in Germany in November. Data output is at the level of 53.2 points to the preservation of moderately positive dynamics and will support the euro. Otherwise, market participants may ignore the output data better than consensus forecast, as it was on Tuesday, November 17 after the release of the institute ZEW. USA Today traders can please positive data on home sales in the secondary market. Growth in employment and average earnings, together with a reduction in interest rates on 30-year mortgages allowed banks to increase mortgage lending in October. Against this backdrop, today is probably worth waiting for release of the data slightly better than median forecasts that will support the US currency. Do not leave without attention and comments Mario Draghi on Friday at the Euro Finance Week conference in Frankfurt. "We'll do everything we need to do for the early rising inflation," - said the head of the ECB. The monetary authorities in the euro zone once again stressed that they are ready to go for further easing of monetary policy if necessary. But the dynamics of the debt market is now on the side of buyers of the euro: the yield on 10-year German government bonds is increasing in relation to the British and American counterparts, which can count on corrective gains in the euro / dollar in the first half of the day.
Recommendations for the euro / dollar: Today, forex traders on the euro together with the US currency is to sell a couple of EUROUSD Sell on the growth rate of the euro to 1.0685 / 1.0725 and record profit at 1.0617.
Euro / dollar levels for today: support levels 1.0617 - 1.0520 and resistance levels: 1.0673 -1.0712.
The pound to dollar GBP / USD forecast for today 11/23/2015
Players of the currency market short-term appreciation of the pound / dollar is used to build short positions. On the debt market dynamics is now on the side of sellers: the yield on 10-year British government bonds last three trading days decreased relative to their German and US counterparts, which reduces the attractiveness of investing in the assets of Albion. In connection with this, probably not only a decrease in quotations in the pair GBP / USD, but upward correction in the cross-rate EUR / GBP. Briton in the last month and a half has appreciated by 3.4% against the currencies of its main trading partner, it increases the risk for UK exporters.CBI last five days again reported about the reduction of the volume of industrial orders, and the negative trend continued for seven months in a row. Respondents CBI identified two key negative factors: the strong pound and the weakening global economic growth. The United States on the other hand, are now able to please market participants moderately positive release on housing sales in the secondary market in the US that will support the US dollar.
Recommendations for the pair GBP / USD: Yesterday at auction traders should sell the pair GBP / USD Sell the growth of the pound to 1.5225 / 1.5255 and 1.5170 at Target.
Pound / dollar levels for today: support levels: 1.5271 - 1.5206 and resistance levels: 1.5315- 1.5351.
The dollar against the yen USD / JPY forecast for today 11/23/2015
Players pair dollar yen in the first half of the session is waiting for the prevalence of bearish sentiment on the background of the positive dynamics of the debt market. The last two trading days in a row yield differential of US and Japanese government bonds declined, increasing the attractiveness of investing in the assets of the rising sun. In this regard, you can expect a decrease in quotations to 122.40 / 122.60, where a pair of buyers will increase long positions based on the continuation of the medium-term uptrend.
Firstly, as already mentioned, today is expected to release positive data on home sales in the secondary market in the US in October.
Second, the yield of the two-year US Treasury bonds, which reflects the expectations of the Fed rate, last week ended at around 0.92%, confidently approaching the highs of the beginning of the month.Support may buck the pessimistic sentiment in the oil market: Friday reli- by Baker Hughes was not able to provide strong support to oil quotations, despite the fact that the number of drilling rigs decreased by 10 units.
Recommendations for the dollar yen pair: Today the foreign exchange market traders should buy the pair dollar / yen Buy's price cut to the 122.58 / 122.38 and target at 123.05.
Dollar Yen levels for today: support levels: 122.61 - 122.22 and resistance levels: 123.00 - 123.60.