Events to watch out for today:
13.00 Moscow time. Eurozone: consumer price index for November.
18.00 Moscow time. USA: ISM Manufacturing Index for November.
EURUSD forecast for today 12/01/2020
A mixed background is being formed today. On the one hand, we can expect a decline in euro quotations against the background of the publication of any data on inflation in the eurozone for November. ECB leaders have noted several times in the past two weeks that inflation will remain in negative territory for several months. The day before we received data on Germany: deflation accelerated and reached 0.7% in annual terms. Low inflation contributes to an increase in asset repurchases by the ECB, which negatively affects the euro. On the other hand, the US Treasury and the Fed today will increase the volume of dollar liquidity in the financial system, which will have a negative impact on the value of the American currency.
EURUSD Investment Idea: Flat 1.1920 -1.2000
GBPUSD Forecast for Today 12/01/2020
The new round of trade negotiations between the UK and the European Union is going quite tensely, although on the sidelines, both sides say they are ready to sign a trade agreement before December 31, when Brexit expires. In my opinion, both parties will either agree closer to the New Year, or agree on another delay for a couple of months. This process is long-lasting and so far it does not see completion. The OPEC + decision to extend restrictions on hydrocarbon production for two to three months will have a positive impact on oil prices, which will cheer up the “bulls” on the pound, since the British currency has historically been correlated with black gold.
GBPUSD investment idea: Buy 1.3323 / 1.3304 and take profit 1.3380
USDJPY forecast today 12/01/2020
The US Federal Reserve will increase the volume of transactions in the bond market today, which may have a positive impact on the US stock market. Fedrerezv today will buy $ 6.02 billion in Treasury bonds and $ 6.7 billion in mortgage bonds. Thus, the total volume of transactions will be $ 12.72 billion against $ 5.2 billion a day earlier. The volume of purchases will more than double, which will cheer up buyers on the NYSE. This is a positive signal for the USDJPY pair as it has historically been correlated with the S & P500.
USDJPY investment idea: Buy 104.24 / 104.10 and take profit 104.50