May 23, 2016, EUR / USD
Forex News Today:
10:30 MSK. Germany: PMI in the manufacturing sector in May (the previous value of 51.8, forecast 52.0).
11.00 MSK. Eurozone: The index of business activity in the manufacturing sector in May (the previous value of 51.7, forecast 51.9).
Forex Forecast EUR / USD The euro dollar today 23.05.2016
The last three trading weeks in a row Euro completed in the "red zone", however, the fundamental background can not talk about the upward correction. First, the expectations the Fed guidance on accelerating economic growth in the second quarter start to make excuses: Friday release on home sales in the secondary market in April has pleased investors by strong data.
The effect of the low base of the first quarter was offset. Why are we interested in this report? Because buying a home is not only responsible, but also costly. Real estate is expensive, and if consumers are willing to make such purchases, then we are in a positive business cycle. Secondly, today publish a report Markit PMI for the manufacturing sector in Germany and the eurozone as a whole and taking into account the negative dynamics of this index since the beginning of this year, in my opinion, today we see strong numbers. Moreover, the euro prevents European exporters. In the first four months of 2016 the single European currency has strengthened against the dollar by 3%, which reduces the competitiveness of products in foreign markets. Third, the credit markets the yield of the German 10-year government bonds continued to decline in relation to their counterparts in the US and the UK, which reduces the attractiveness of investments in European assets.
Euro Dollar recommendations for today: Traders in the euro today is to sell EUR / USD Sell on rise to the levels of 1.1230 / 1.1265 and target at the level of 1.1160.
Forex forecast GBP / USD pound dollar today 23.05.2016
On Friday, the Forex for pound there was profit-taking on long positions, and now the downward trend will be continued for two reasons.
First, the credit market indicates that the British currency climbed very high: the yield differential of US and UK government bonds widened to the highest level in the last month and a half. Let me remind you that at that time there were quotes in 40 pieces.
Second, reduce waiting quotes black gold, as investors cut positions in riskier assets in anticipation of the FOMC meeting, which will take place on 15 June. This factor, in turn, will also put additional pressure on the pound sterling.
Pound Dollar recommendations for today: Players should sell the pair GBPUSD Sell on price increases to the levels of 1.4520 / 1.4555 and 1.4445 on the close of the transaction.
Forex Forecast USD / JPY Dollar Yen on 23/05/2016 Segond
Today, forex, players on the dollar against the yen is to build long positions on pullbacks for two reasons.
First, the United States this month, pleasing investors positive macroeconomic statistics and the closer the meeting of the US Federal Reserve, the more market participants are buying the US dollar. Of course, FED June 15 may disappoint investors and raise interest rates. However, now the market is fascinated by the charm of the dollar and it should be used to their advantage.
Second, the yield differential of 10 Feed the United States and Japan, government bonds and expands close to the mark of 200 bp, which increases the attractiveness of investing in US assets. In addition, the weakening of the yen benefit Japanese exporters, and in recent days we do not see a strong resistance from Japanese importers, which indicates that they have hedged their risks and are willing to weaken the yen.
Dollar Yen Trading recommendations for today: Market participants should buy the pair Buy's price cut to 109.95 / 109.65 and Target at the level of 110.60.
Analyst « FreshForex »