Foreign Exchange Market on March 17, 2016, EUR / USD
News forex traders today:
15.00 MSK. United Kingdom: Summary of monetary policy.
15.30 MSK. USA: The balance of payments current account balance for the 4th quarter (previous value -124.1B; -115.0B forecast).
15.30 MSK. US: The number of initial applications for unemployment benefits in March (the previous value of 259K; 267K forecast).
The forecast of the euro against the dollar EUR / USD today 03/17/2016
Janet Yellen at yesterday's press conference FOMC said that investors expected from her: FED in the current year may increase the rate of no more than two times and risks for the US economy starting to grow on the background of a strong dollar, slowing China's GDP and low energy prices.
Do not expect a sharp fall in the American, since such expectations have long been present in the market and are already in quotes. Even if the FOMC only twice will raise interest rates this year, the yield differential of government bonds will still expand strongly in favor of US assets, and investors will have no other choice but to go into dollars. Moreover, the increase in "risk appetite" will put pressure on the euro as a funding currency. On Wednesday, leading US stock indicators reacted positively to the Fed's decision not to change the monetary policy.
Forex recommendations on a pair euro dollar today 03.17.2016 : euro players paired with an American couple is selling Sell on the growth of quotations to 1.1255 / 1.1295 and take profit at the level of 1.1170.
Forecast exchange rate pound dollar GBP / USD today 17/03/2016
Today, the British main event will be the announcement of the results of the Bank of England meeting on monetary policy. Since the last meeting of the regulator the yield on 10-year British government bonds declined by 21 basis points, indicating that the decline in inflation expectations in the United Kingdom. Do not leave without attention and negative PMI manufacturing and services sectors of the first two months, it indicates that we should not expect the acceleration of economic growth in the first quarter. The growth of pessimism about the economy Albion contributes to a reduction in consumer activity: in 2015 the volume of retail trade grew by 2.28%, against 4.31% a year earlier growth. Given that the Bank of England's management expects the slowdown in wage growth in the current year, the negative scenario becomes apparent. America on the contrary, yesterday reported about the growth index of core inflation to the level of 2.3% on an annualized basis, which causes market participants to talk about the feasibility of a quick increase in the US Fed Funds rate. What contributes to the growth of bearish sentiment in the pair GBP / USD. And the debt market dynamics confirms the downward trend: the British government bonds yield decreases in relation to the German and American.
Forex recommendations to pair pound dollar today 17.03.2016 : Traders pound with bucks is worth sell Sell couple on the growth of quotations to 1.4295 / 1.4345 and take profit at the level of 1.4230.
Forex forecast the dollar against the yen USD / JPY today 03/17/2016
Traders on the pair dollar foreign exchange market, the yen today is worth waiting for the development of an upward trend. Investors will build long positions on pullbacks as the market again began to take into account the factor of different directions of monetary policy the Bank of Japan and the US Federal Reserve. First Central Bank soften monetary policy due to low inflation expectations, a second, think about the double tightening, as the core CPI indicator for the first time in May 2012 reached the level of 2.3% in annual terms. The growth of quotations on the world stock markets should not be left unattended. Demand for risky assets will put pressure on the yen as a funding currency in the carry trade №1 operations.
Forex recommendations to the dollar yen pair today 17/03/2016 Traders should buy the pair Buy on decline of quotations to 112.00 / 111.55 and take profit at the level of 112.80.
analyst « FreshForex »