Forex Events today:
12:30 MSK. UK: Consumer price index for December (the previous value of -1.2% y / y; the forecast of 1.4% y / y).
13.00 MSK. Germany: Consumer Sentiment Index in the business environment of the ZEW institute in January (the previous value of 13.8, forecast 18.9).
Currency pair EUR / USD forex forecast on 01.17.2017
In the forex trading in Europe, players should expect an increase in the euro against the background of positive data from the ZEW institute on the business climate in Germany in January.
The growth of the German economy strengthened, as indicated by the positive dynamics of the composite index of the PMI, and the growth of corporate profits. The trade balance surplus of November results grew by 10.1% in annual terms, to the level of 21.7 billion. Euro. The low rate of the EU single currency plays into the hands of German exporters: in Q4 2016 euro losses against the dollar sostvaili 6.47%, and in this regard, we should expect the growth of new orders in early 2017. However, the strong growth of the EUR / USD did not have to wait, as the euro will be very difficult to go beyond the monthly range 1.0339 -1.0684. Given that tomorrow forex players may see data on US inflation for 2016 at 2.1%, the sellers in the market will be more than the buyers.
EUR / USD recommendation: Buy 1,0600 / 1,0580 and to take -profit 1.0635.
Forex rate forecast pair GBP / USD today 01/17/2017
Today, in the first half of the trading day in the forex, traders should expect from a pound of moderate growth of quotations in the region of 1.21. A report on inflation in Albion December can reach the level of the median forecasts, an increase to a maximum of 2013. Investors should not expect CPI growth against the backdrop of increasing the producer price index, and the devaluation of the British. The baseline scenario assumes the growth of today is to a level of 1.4% in annual terms. If the result is a higher growth rate, the sterling and the reaction will be more severe, until the closing of the gap on Monday (1.2180). Though, probably, this growth will be temporary, and tomorrow you can expect a new wave of sales pound on the back of strong US inflation data.
GBP / USD recommendation: Buy 1,2030 / 1,20 00 and take profit 1,2100.
Currency pair USD / JPY forex forecast on 17.01.2017
Players on the dollar in tandem with the currency of the country of the Rising Sun, in the first half of trading on the foreign exchange market should not expect a moderate decline in quotes USD / JPY pair on a background of the Asian stock market weakness. On Monday, stock markets in Europe were closed in the "red zone" and in the first hour on the Tokyo Stock Exchange bearish sentiment may prevail as well. Then the likely growth of quotations, as market participants may start to build long positions on pullbacks. Why would they do that? There are two reasons.
First, we should expect the continuation of the positive trend of quarterly reports of American corporations that cause the growth of the American stock market. The fact that the majority of corporate reports will be positive this month, the ISM indices indicate that in the fourth quarter showed strong growth.
Second, tomorrow will vyydeo report on inflation in the US in January, where the players are likely to see to see the mark of 2%, which is the goal of the Federal Reserve. This trend allows FOMC continue the policy of raising the key rate.
USD / JPY recommendation: the Buy 114,00 / 113,60 and take profit 114,75.
Aleksandr Goryachev
Company Analyst FreshForex
