Forex. Weather on August 8, 2016
The main events for today:
It is not expected of important macroeconomic statistics.
Forex forecast of EUR / USD EUR / USD today 08/08/2016
Data from the United States who came last Friday, strengthened expectations of an early increase the Fed's discount rate. FED meeting held on September 21 and investors are beginning to gradually adjust to the fact that the monetary authorities to tighten monetary policy.
It is worth noting that this is only rumors and expectations. The Fed may not raise rates in September and again promise to do it later. But as you know financial markets live primarily rumors and expectations, and then guided by the facts. Today, the rumors on the dollar side. It should be noted that the statistics published in the United States is strong. Non-Farm came in at 255 thousand., And June data revised growth of 5 thousand., To the level of 292 thousand. Thus, over the past two months, employment increased by 547 thousand., Against 505 thousand. A year earlier. Indicator 12-month average back above the level of 200 thous., Indicating steady growth in the US economy, and a positive factor for the dollar. Average earnings increased in July by 0.31% m / m, up to $ 25.69 / hour. Both reports indicate an increase in inflation expectations in the short term, it is necessary to FOMC to raise interest rates.The credit market has reacted in a natural way: the yield differential of US and German 10-year government bonds widened by 5 basis points at once, which increases the attractiveness of investing in US assets.
EUR / USD recommendation today: Traders on the euro in tandem with bakcom today is to sell the European currency Sell the growth of quotations to 1.1100 / 1.1130 and take profit at the level of 1.1020.
Forex forecast GBP / USD GBP / USD today 08/08/2016
The signal for new sales Briton is a storm on the debt market. The yield on 10-year British government bonds fell heavily to the US and German is traditionally a bearish factor for the sterling. The employment data in the United States, published a rather positive, allow Forex traders to trade on expectations of monetary multidirectional Fed and the Bank of England's policy. FED promised to raise rates in September in the case of strong stat. data, the Bank of England has lowered the rate on August 4, and promised a further reduction in the current year. Thus, it is necessary to wait for a smooth reduction of the pound and the minimum update July (1.2796) in the next two weeks.
GBP / USD recommendation today: market participants on a pair GBP / USD today in currency trading is to sell a couple Sell on the growth of quotations to 1.3090 / 1.3150 and take profit at the level of 1.2920.
Forex forecast dollar / yen USD / JPY today 08/08/2016
Investors today are two reasons to wait USD / JPY currency market growth:
First, the credit market yield spread of US and Japanese 10-year government bonds is extended after a strong employment report in the US, it increases the attractiveness of investing in US assets. Investors expect the US Federal Reserve interest rate increase during the period from September to December, and the Bank of Japan in the background of low inflation expectations may resort to new stimulus measures. This trend will ensure the inflow of capital into the US dollar.
Second , last week the world's stock markets closed in the "green zone", which indicates the growth of the "risk appetite" and will put pressure on the Japanese yen as a funding currency.
USD / JPY recommendations for today: Players forex dollar against the yen today is worth buying a pair Buy's reduction of quotations to 101.60 / 101.25 and take profit at the level of 102.10.
Analyst « FreshForex »