17.00 Moscow time. USA: Fed Chairman Jerome Powell will deliver a speech.
Forex forecast for the euro dollar EURUSD today 05/19/2020
Fed Chairman Powell, Treasury Secretary Stephen Mnuchin will address the Senate Banking Committee this afternoon. The current situation in the American economy requires a monetary emission, and in a significant amount. Against this background, we can expect relevant comments from the US financial authorities. For the dollar, this is a negative signal, since the growth of the money supply historically leads to a depreciation of the American currency. The situation in the interbank lending markets in New York and London also indicates a decrease in the dollar - in these markets there is a decrease in interest rates.
EURUSD recommendation: Buy 1.0890 / 1.0870 and take profit 1.0950
Pound dollar forex forecast GBPUSD today 05/19/2020
The inflow of capital into risky assets will positively affect the value of the British currency. On the eve of the American biotechnology company Moderna announced a positive first phase of testing. The vaccine was able to produce antibodies to the Covid-19 virus in all 45 subjects tested. Against this background, on Monday evening, we saw a powerful rally in risky assets - investors bought oil, industrial metals and stocks around the world. Today I expect the continuation of this trend. The central banks of the G-20 countries have printed so much money that investors will master it for a long time.
GBPUSD recommendation: Buy 1.2183 / 1.2160 and take profit 1.2244
USDJPY forecast for today 05/19/2020
The positive dynamics of the debt market signals the development of an uptrend. The yield spread of 10-year US / Japanese government bonds shows strong growth, which in turn will provide strong support to the bulls. You can not ignore the rally in the stock markets - investors are optimistic about the prospects for stock markets, after the news that a vaccine against COVID-19 may be developed in late summer. The US stock index S & P500 is trading near the psychological level of 3000 p. And can test it today.
USDJPY recommendation: Buy 107.15 / 106.95 and take profit 107.50