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The forecast of the euro dollar pair EURUSD today 20/03/2020
dollar basket index set on the eve of a three-year high and now there are several reasons for the decline of the dollar, which in turn have a positive impact on the euro quotes. US banks on Thursday as part of overnight operations, the Fed took 72.89 billion dollars against 98.99 billion the previous day. For example, on Tuesday asked banks 152.75 billion dollars. The demand for money from the banks is reduced. This factor indicates the stabilization of the money market in the US - acute money problems are no more. The money market in London, the demand for dollars is still high - LIBOR rate as day, and at 3 months (the most popular loans from banks) is still several times higher than in New York. This is a negative signal, but there is a good factor. Fed, understanding the problem of shortage of dollars outside the United States, on Thursday announced a currency swap contracts with a number of the Central Bank of the developing countries. It is from this group were the highest bid for the US currency this week. Against this background, reducing demand for the dollar from banks will allow the euro to show the correction.
EURUSD recommendation: Buy 1.0700 / 1.0670, and take profit 1.0790
Forecast GBPUSD exchange rate for today 20/03/2020
Britain's currency will continue the correction to the US dollar. The crisis of dollar liquidity, which was observed last two weeks, is completed. Federal Reserve quickly, "extinguished the flame" in the money market over the past three weeks has lowered the discount rate by 1.5%, launched a program of quantitative easing to 700 billion dollars and provided for central bank currency swaps G-20 countries. In the short term these measures will be enough for a technical correction and return to the psychological level of 1.2000. In the medium term, 3-4 months, we will see a good trend of a weakening dollar, as the measures that took the Fed observed in history more than once, and they have always led to the devaluation of the dollar.
GBPUSD recommendation: Buy 1.1600 / 1.1550, and take profit 1.1715
The forecast rate USDJPY pair for today 03/20/2020
At present, the pair USDJPY formed a mixed background. On the one hand, we can expect the depreciation of the US currency, as US banks have significantly reduced the demand for liquidity from the Federal Reserve. Interest rates, as does the volume of borrowing is reduced. This factor may force investors to cover the "Long" on the dollar ahead of the weekend, causing a pullback down in the currency pair. On the other hand, the Chinese authorities to treat coronavirus COVID-19 intend to use protivogrippoznoe medicine "Avigan", which was developed in Japan. As the head of the National Development Center for Biotechnology Zhang Xinming, the drug was tested in the cities of Wuhan and Shenzhen. The tests involved 240 and 80 patients, respectively. The number of patients coronavirus in China now stands at 6569 man March 1, patients were 32616 people. In the last week the number of patients in China is reduced by an average of 700 people. It turns out in April in China should not be coadministered coronavirus. If other countries also begin to actively use "Avigan" the epidemic will decline, and with it will recover the stock markets, which is positive for the currency pair, since it is correlated with the S & P500 index.
USDJPY recommendation: flat 109.40 -110.50.