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Forex forecast and recommendations today 04/22/2020
17.30 Moscow time. USA: Department of Energy April Crude Oil Reserves Data.
Forecast EURUSD today 04/22/2020
In most European countries, there is a decrease in the incidence of coronavirus COVID-19, which is positively perceived by investors. This is indicated by the ZEW index, which is based on a survey of investors and economists. This figure in April rose to 25.2 points, which is the maximum for the last three months. The last time the index was at such levels before the epidemic. Many European politicians say that in May they will gradually remove quarantine. One cannot ignore the positive dynamics of the interbank lending market in London: interest rates on loans in euros are growing, and for loans in dollars are falling. In such periods, there is an increase in EURUSD quotes.
EURUSD recommendation: Buy 1.0838 / 1.0817 and take profit 1.0900
GBPUSD forecast today 04/22/2020
Today, for forex players in the GBPUSD pair, a mixed background is being formed. On the one hand, it is possible that the Briton will depreciate amid negative macroeconomic statistics from the UK, as population incomes are declining there due to BREXIT and coronovirus. The British economy received a double blow this year, unlike the rest of the largest economies in the world. On the other hand, a strong decline in dollar lending rates in London signals a lack of demand for US currency. The US Federal Reserve did not conduct short-term financing operations on the eve of using treasury bonds as collateral. The last time this was observed on March 25, and then the dollar was falling.
GBPUSD recommendation: flat 1.2250 -1.2340
USDJPY forecast today 04/22/2020
The USDJPY pair is forming a downtrend for two reasons. First, investors are actively buying back drawdowns in gold, as a result of which the precious metal is being traded close to the psychological level of $ 1,700 / ounce. Gold may show good growth, which will negatively affect USDJPY quotes, as assets have a good inverse correlation. Secondly, in the USA on the eve of the banks did not apply to the Fed for short-term financing, which indicates the absence of a liquidity deficit in the US financial system. In such periods, the dollar shows a drop in quotations.
USDJPY recommendation: Sell 107.75 / 108.00 and take profit 107.35