The forecast of the euro to the dollar EURUSD today 03/16/2020
Today, the US Federal Reserve has lowered the discount rate by 1% and announced its quantitative easing program in the amount of 700 billion dollars. It is worth noting that on Friday March 13th the Federal Reserve began to implement quantitative easing, because on that day it has acquired treasury bonds worth 33 billion dollars. But QE-4 official start was given today. Moreover, the Bank of Canada, Bank of England, Bank of Japan, European Central Bank, the Federal Reserve and the Swiss National Bank announce a coordinated action to enhance the provision of liquidity through constant agreements on a swap of liquidity in US dollars. This is an important factor to stabilize financial markets. How to use this information to trade today? Stimulating the Fed measures will have a negative impact on the dollar,
EURUSD recommendation: Buy 1.1110 / 1.1055, and take profit 1.1220
Forex forecast pair GBPUSD 16.03.2020
According to the British currency has ripened for at least a technical correction upwards, and a maximum of a trend reversal, as this indicates the positive dynamics of the debt market, where the yield spread on 10-year UK government bonds / US shows growth. It should be noted that large-scale stimulus measures by the Federal Reserve will lead to a weakening of the dollar. Quantitative easing (QE) will start today at 17.15 MSK., When the Fed buys a $ 10 billion bond. Then, an hour later they will be bought securities for another $ 8 billion. During the day the Fed bought securities in the amount of $ 40 billion.
GBPUSD recommendation: Buy 1.2320 / 1.2290, and take profit 1.2400
USDJPY Forecast Today 16/03/2020
Last week, the USDJPY has completed the increase in prices, despite the fears of coronavirus. The rule in the market: in the period of instability should buy Japanese yen and gold. However, last week, investors are actively getting rid of these instruments, which caused a strong rally in the USDJPY pair in the second half of the week. What is the cause. Firstly, Donald Trump announced in the US state of emergency. Name terrible, but it is not necessary to be afraid, because now the White House could use $ 50 billion to combat the coronavirus. Money in the US economy will be more - government spending increases. Second, the US Federal Reserve on Thursday March 12 announced a wide-ranging program of short-term loans to commercial banks, which reassured the banking system. Bankers on Friday, March 13 took the Fed only 86.25 billion dollars, despite the fact that the Fed was ready to provide 720 billion. On Thursday, March 12 bankers have filed applications for 198.1 billion dollars. Thus, the credit market has calmed down. Bankers are worried that they do not have enough money, but raising the limit from the Fed caused them to reassess the situation.
USDJPY recommendation: Buy 106.00 / 105.70 and take profit 106.80