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Forex forecast and recommendations today 13.07.2020
Forex forecast and recommendations today 07/13/2020: EUR / USD - Falling dollar rates, GBP / USD - Correlation of the pound and oil, USD / JPY - Growth of stock markets
EURUSD forecast for today 07/13/2020
On the interbank lending market in New York and London, there is a negative situation for the US currency. In New York, the Federal Reserve canceled repo auctions last week, as commercial banks did not apply for refinancing. Bankers have no problems with dollar liquidity, a lot of money. In London, the three-month Libor rate, which is the benchmark for the European market, has updated its four-year low and is approaching the upper limit of the Fed's range of rates, which is at 0.25%. Lower rates also indicate the absence of problems with dollar liquidity in European banks.
EURUSD recommendation: Buy 1.1310 / 1.1290 and take profit 1.1357
GBPUSD forecast for today 07/13/2020
Today, forex players in the GBPUSD pair are waiting for a mixed background. On the one hand, there is a possibility of a drop in quotes amid falling interest rates on loans in British pounds in the interbank lending market in London. The three-month Libor rate in pounds last Friday updated the historical low and fell below 0.1%. On the other hand, a bullish rally in the oil market may support the pound, as the British currency has historically correlated with oil prices. The International Energy Agency presented a fresh release, which reported on expectations of an oil shortage from July 2020 to September 2021. Traders reacted to this report by increasing long positions on black gold.
GBPUSD recommendation: flat 1.2620 -1.2690
Forecast USDJPY forecast today 07/13/2020
Today, market participants should wait for the continuation of the uptrend in the US stock market, which will positively affect the quotes of this currency pair, since historically USDJPY has a close correlation with the S & P500 index. The US stock market may show good growth this week as the Treasury account at the Fed began to decline. The Ministry of Finance begins to spend its surpluses, which have been accumulating over the past six months. The funds will be used to support business and the public. Less than 4 months is left until the next presidential election in the United States and D. Trump now needs to build up political capital through various incentive programs.
USDJPY recommendation: Buy 106.75 / 106.60 and take profit 107.19