Forex events today:
12.00 MSK. Germany: The indicator of business environment from IFO for January (the previous value of 111; the forecast 111.3).
18.00 MSK. US data on crude oil inventories from the Department of Energy in January (previous value 2,347M; 2,724M forecast).
Forex Forecast EUR USD EUR / USD today 01/25/2017
After three days of growth the pair today may show the correction to 1.0690 / 1.0660. Why is the "bears" will dominate today?
Firstly, we can expect the release of data on the index of IFO worse than expected median since the eve of the negative composite index from Markit published. Between the two figures is a strong correlation in this regard, it is difficult to count on a good report today.
Secondly, the growth of the European stock markets on the back of positive corporate statistics will put pressure on the euro as a funding currency. The last two days the pair is trading within a narrow 1.0705 -1.0774 and the flat today can be expected to break the lower boundary. As far as we can get away down? We learn today.
EUR / USD recommendation 25/01/2017: Sell 1,0730 / 1,0770 and take profit 1,0690.
Forex forecast dollar pound GBP / USD today 01/25/2017
Players should not expect development of the descending correction and recommend to sell the pair. In the credit markets, the yield on 10-year UK government bonds falls in relation to their counterparts from the United States and Germany, which reduces the attractiveness of investments in British assets. Debt market clearly indicates a correction on the pound. You can not ignore the release date in the US crude oil inventories. Given the sharp increase in the number of vertical and horizontal drilling rigs in the United States can increase as oil reserves and increase production volume, which will be perceived negatively by investors.
GBP / USD recommendation 25/01/2017: Sell 1,2500 / 1,2540 and take profit 1,2430.
Forecast Forex Dollar Yen USD / JPY today 25/01/2017
Two reasons for traders to buy the dollar yen pair.
First, on the bond market the yield differential of 10-year US and Japanese government bonds expanded, which increases the attractiveness of investing in US assets.
Second, the US stock market closed trading on Tuesday, with steady growth, which indicates an increase in "risk appetite" and will put additional pressure on the yen as fondirovaniya№1 currency in carry trade operations. The S & P500 after three weeks flat market shows strong growth, allowing rely on testing the psychological level of 2300. As we can see this mark? I think that on Friday, when the release will be published on US GDP for the 4th quarter of 2016.
USD / JPY recommendation 25/01/2017: Buy 103,70 / 103,40 and take profit 104,45.
Aleksandr Goryachev
Company Analyst FreshForex
