Forex Forecast January 31, 2018
13:00 MSK. EuroZone CPI January (previous value of 1.4% g / g; forecast 1.3% g / g).
16.15 MSK. USA: Change in the number of employees from ADP in January (previous value of 250K, forecast 191K).
22.00 MSK. US: FOMC decision on the basic interest rate in January (previous value
Forex euro dollar EUR / USD today 31/01/2018
In the morning, before the publication of data on inflation in the euro area, we can expect moderate growth of quotations of the single European currency against the background of capital flight from risky assets. Investors are selling shares on all continents, which will provide support for the euro as a funding currency. Then all investors' attention will switch to the release of the inflation in the euro zone. On the eve, we got a weak report from Germany, where consumer price growth rate fell by 0.1%, which in turn does not allow today rely on the release of positive data. This factor will put pressure on the euro quotes. Late at night, the US Federal Reserve will announce the results of its first meeting this year. Futures on the FOMC rate indicates that today we should not expect any changes in monetary policy.
EUR / USD recommendation: Sell 1,2418 / 1,2440 and take profit 1,2350.
Forex forecast for the pound dollar GBP / USD today 01/31/2018
Players on Forex GBP / USD two richina sales:
First, the credit markets there is a decline of yield on 10-year UK government bonds relative to their counterparts from the United States, which will put pressure on the quotes pound. Today the Federal Reserve in the evening, during his meeting noted the acceleration of inflation expectations in the US economy and the possibility of raising rates four times this year. This may be precisely the possibility, but the market for this rumor may be enough to investors began to massively buy US currency.
Second, the commodity market is observed the second consecutive day the sale of oil, which will also put pressure on the pound, because of the direct correlation GBP / USD and Brent.
GBP / USD recommendation: Sell 1,4166 / 1,4190 and take profit 1,4085.
Forex rate forecast for the dollar, the yen USD / JPY today 01/31/2018
At present, formed a mixed background. In the first half of the day should expect a decrease in quotations in the area of 180.45 / 108.20, against the background of negative dynamics of stock markets, which the pair USD / JPY has a close correlation is not the first year. On the eve of the US investors to close long positions en masse in the stock market, which caused a decline in S & P500 index in the range of one percent. In the second half of the day to help the dollar may come the US Federal Reserve. As noted earlier, the US central bank is now a pleasant surprise to the market that embolden "bulls" on the dollar.
Trading recommendation USD / JPY:
Sell 108,88 / 109,15 and take profit 108,45.
Buy 108,45 / 108,20 and take profit 108,90.
Company analyst FreshForex