Forex Forecast February 1, 2018
Events traders today:
12:30 MSK. United Kingdom: PMI index for the manufacturing for January (the previous value of 56.3, forecast 56.6).
18:00 MSK. US: ISM manufacturing index for January (the previous value of 59.7, forecast 59.0).
Forex euro dollar forecast EUR / USD 01.02.2018
Two reasons forex players sell EUR? USD.
First, the debt market is reduced yield of the German 10-year bonds to their counterparts from the United States and the United Kingdom.
Second, investors are increasing their long positions in Asian stock markets, which will contribute to capital outflows from safe assets, which include the euro and the Japanese yen. Thirdly, today we can expect out of a positive ISM index for the US release of the manufacturing sector, it will also support the US currency. In the US, there is an increase in capacity utilization, which indicates the growth of business activity in the industry.
EUR / USD recommendation: Sell 1,2425 / 1,2450 and take profit 1,2385.
Forex Pound Doll forecast GBP / USD on 01/02/2018
The British players today in the forex is waiting for a mixed background. On the one hand, the debt market a decrease in yield spread on 10-year UK government bonds and the United States, that will put pressure on the British currency quotes. As noted earlier, in the afternoon we can expect the release of positive macroeconomic statistics from the US, which also increase the pressure on the value of the pound. On the other hand, support the British currency may have black gold quotes that demonstrate growth. However, it is not so simple. On the eve of the United States have reported on the growth and production of crude oil stocks, which is a negative factor for hydrocarbon prices. Yesterday the market ignored this factor, but it can not be excluded,
GBP / USD recommendation: flat 1.4130 - 1.4220.
Forex dollar yen forecast USD / JPY on 01/02/2018
Traders on the USD / JPY - Buy for two reasons.
First, the debt market is experiencing growth differential return of 10-year government bonds of the United States and Japan, which could support the dollar, due to the strong correlation of the bond market and the pair USD / JPY.
Second, in the early morning Japan reported about the growth of the industrial PMI index to its highest level since March 2014, which cheered traders to open a long position on the Tokyo Stock Exchange. Given the fact that the pair USD / JPY and the Nikkei 225 index have a strong direct correlation, this factor will also provide support for the quotations.
USD / JPY recommendation: Buy 109,30 / 109,10 and take profit 109,80.
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