Forex forecast EURUSD for today 06/22/2020
 

The mixed dynamics of the interbank lending market in New York and London does not allow the euro to reach its full potential. In New York last Friday, a repo auction was not held, because commercial banks did not submit applications for refinancing to the Federal Reserve. If in the first half of the month bankers willingly took loans from the Fed, now there are no applications. This factor indicates the absence of problems with dollar liquidity, which is positive for the euro. In London, there has been an increase in overnight rates on dollar loans, which indicates liquidity problems, and this factor does not allow the European currency to demonstrate a good trend. What to do in this situation? In my opinion, the problems on the European interbank market are short-term, since the Fed controls the situation and will not allow imbalance in the market. On this background,

EURUSD recommendation: Buy 1.1188 / 1.1170 and take profit 1.1260.

 

 

 

Events to watch out for today:

17.30 Moscow time. US: Department of Energy Crude Oil Reserves Data

Forex forecast EURUSD for today 06/17/2020

In the interbank lending market in recent days there has been an increase in rates on dollar loans, but now the situation has changed. In London, the three-month Libor rate, which is considered the benchmark for the European market, updated the four-year low. In New York, at a daily repo auction, bankers sent applications to the Fed in the amount of $ 21.9 billion, which is the lowest level this month. Moreover, the monthly auction did not take place due to the lack of applications from commercial banks, which indicates the absence of problems with dollar liquidity. For the dollar, this is a negative signal.

EURUSD recommendation: Buy 1.1260 / 1.1240 and take profit 1.1350

 

 

 

Events to watch out for today:

15.30 Moscow time. USA: Change in retail sales for May.

17.00 Moscow time. USA: Fed Chairman Jerome Powell will deliver a speech to Congress.

Forex forecast EURUSD for today 06/16/2020

The main event of the day will be the speech of the head of the US Federal Reserve in Congress. On the eve of the Federal Reserve announced the redemption of corporate bonds in the amount of $ 75 billion. For the market, this was a pleasant surprise, which caused the sale of the dollar against most competitors. Today, the head of the Fed may declare that the Central Bank is ready to control the “yield curve of bonds” if necessary. In short, the Fed is ready to increase the repurchase of assets. Will such a need be needed in the future? In my opinion, yes. As bond yields will continue to grow as the quarantine caused by the COVID-19 pandemic ends. A few words should be said about the coronovirus itself. A few days ago, one of the leaders of WHO, Maria Van Kerkkhov, who stated that asymptomatic carriers do not distribute COVID-19. But it was precisely the asymptomatic spread that was the only reason for the introduction of quarantines practically all over the world. What does it turn out: they lied to us, but did we believe? WHO says they erred in their initial conclusions. Now it becomes clear why many countries are quickly removing restrictions, despite the high number of patients with COVID-19. What do we have in the dry residue? Additional money supply from the Fed will negatively affect the value of the dollar. What do we have in the dry residue? Additional money supply from the Fed will negatively affect the value of the dollar. What do we have in the dry residue? Additional money supply from the Fed will negatively affect the value of the dollar.

 

EURUSD recommendation: Buy 1.1325 / 1.1300 and take profit 1.1389

 

 

 

Forex forecast for the EURUSD pair today 06/15/2020
 

In the interbank lending market in New York and London, there has been an increase in rates on dollar loans, which indicates a decrease in the quotes of the EURUSD pair. In New York, at the last repo auction, bankers filed bids with the Fed in the amount of $ 49.2 billion. On average over the past week, these auctions have been submitted applications for 59.71 billion dollars. In May, the figure was almost three times less. In London, the benchmark three-month Libor rate hit a seven-day high. Such dynamics indicates a change in trend, but a technical correction. The US Federal Reserve still controls the situation and last week announced that it would continue to buy back assets in the market in the amount of $ 80 billion.

EURUSD recommendation: Sell 1.1250 / 1.1270 and take profit 1.1210