Forex weather on July 7, 2016
Forex news traders today:
11:30 MSK. UK: Industrial Production for May (the previous value of 2.0% m / m; the forecast -1.0% m / m).
15.15 MSK. USA: Change the number of employees from ADP in June (the previous value of 173K; 151K forecast).
18.00 MSK. US data on crude oil inventories from the Department of Energy in June (the previous value -4,053M; -2,500M forecast).
Forex Forecast EUR \ USD EUR / USD today 07/07/2016
Yesterday's report from the ISM for the service sector in the US in June has pleased investors and positive data indicate that market participants have become too early to say that the Fed will not raise interest rates this year.
PMI index rose to 56.5%, the highest level since November 2015 and corresponds to 3% GDP growth. You can not ignore the growth of employment index, which allows the calculation of the output data on Friday's Non-Farm better than the consensus forecast. The debt market reacted to this report is quite natural: the differential yields on 10-year US and German government bonds began to expand, increasing the attractiveness of investing in US assets. European stock markets are still reeling: Key indices ended the day in the "red zone". The largest decline was once again the paper of the banking sector: the shares of Deutsche Bank has lost 5,56%, Commerzbank at 3,6%, UniCredit 3.3%. Thus, we have a strong macroeconomic statistics from the US and uncertainty about the future of the European banking sector, which is a strong negative factor for the euro.
Euro \ dollar recommendation: Trading the Euro to the dollar today is worth a couple of sell Sell on the growth of quotations to 1.1130 / 1.1190 and take profit at the level of 1.1010.
Forex forecast for the pound dollar GBP / USD today 07/07/2016
As the pair Pound Dollar Player three reasons to sell sterling currency market.
First, as noted above, the US traders will appreciate the positive macroeconomic statistics, which allows the calculation of the output of strong labor market data on Friday.
Second, in the credit markets, the yield on 10-year British government bonds decreased in relation to the German and American, it reduces the attractiveness of investments in the Kingdom of assets.
Third, this week once again increased sales of the British banking sector shares, which traditionally puts downward pressure on the currency: Lloyds Banking shares slipped by 12,5%, Royal Bank of Scotland to 12,25%, Barclays at 5.96%. Large-scale sales of shares of financial institutions are due Brexit.
GBP \ USD Recommendations: Tryderam pound with bucks today is to sell the pair GBP / USD Sell the growth of quotations to 1.3000 / 1.3100 and take profit at the level of 1.2860.
Forex rate forecast USD / JPY today 07/07/2016
The pair last four trading days showed a decrease in quotations and there is nothing surprising in the fact that there is a technical correction after the positive data from the ISM for the service sector in the US in June. The current trend is just a correction, as investors partially fixed income near the psychological level of 100 yen per dollar. Why is it a correction rather than a reversal? As noted earlier, the storm on the European stock markets as a whole and, especially in the banking sector will help to reduce the "risk appetite" in the world. In the afternoon, the United States may publish a positive employment report from ADP to the reduction of the number of unemployment benefits, as well as employment growth in the service sector from the ISM. This factor may provide short-term support for the dollar, and we can see the growth of quotations to 101.70 / 102.10, where it is necessary to build up short positions, as the downtrend in the currency pair is very strong.
Dollar Yen recommendations: Players on the dollar with the yen today is selling a pair Sell on the growth of quotations in the area of 101.70 / 102.25 and take profit at the level of 100.80.
Analyst « FreshForex »