Euro to dollar forex forecast EURUSD 05/18/2020
The euro is clamped in the range 1.0774 -1.0890. What are the prospects for the euro? The first thing I would like to note is the dynamics of the interbank lending market, where rates are falling, both for loans in dollars and for loans in euros, but dollar rates are falling faster. For the euro, this is positive. The upward trend in gold and oil is observed on the commodity market, which is also positive for the European currency, which correlates with these assets. The US Treasury Department will post a large volume of bonds this week on Tuesday and Thursday, which will support the dollar. According to CFTC, speculators are building up long positions in the euro, which also complements the “bullish picture” in the European currency.
EURUSD recommendation: Buy 1.0800 / 1.0774 and take profit 1.0890
GBPUSD forecast for today 05/18/2020
Today, a mixed background is forming in the GBPUSD pair. On the one hand, we can expect a drop in quotations against the background of negative dynamics in the debt market, where the yield on 10-year UK government bonds falls in relation to its counterparts from the United States and Germany. According to CFTC, large speculators are increasing short positions on the pound, which also indicates a decline in quotes. On the other hand, a bullish rally in the oil market could have a positive effect on the British currency, since oil has an inverse correlation with the US dollar.
GBPUSD recommendation: flat 1.2060 -1.2140
The dollar yen forecast USDJPY today 05/18/2020
Two factors have a strong influence on the course of trading. The first is the dynamics of gold, since the precious metal has historically strongly correlated with the Japanese yen. Yen and gold are two so-called “safe assets”. Gold shows good growth this month and is set to test the resistance level of 1795, which in turn may cause a decrease in the USDJPY quotes. The second factor is the dynamics of the VIX “fear index”. The fall of this indicator has a positive effect on the quotes of this currency pair. Now we are witnessing just such a trend. What do we have in the dry residue? We have two opposite signals, and against this background, today it is worth waiting for the development of a side trend.
USDJPY recommendation: flat 106.70 -107.45