Forex Events for today:
17:00 MSK. US: Consumer confidence indicator in April (previous value of 125.6; 123.7 forecast).
Forex. Euro Dollar EUR / USD forecast for today 04/25/2017
Two reasons for traders to wait for depreciation of the euro:
First , European stock indices CAC40 and the DAX30 storm new heights, which usually has a negative impact on the euro as a funding currency. Between the euro and the European indices, the reverse is a strong correlation, as the ECB in the second half of 2014 launched incentive program
Second , in the US session we can expect the release of data from the Conference Board better than expected against the background of the median average earnings growth. The pace of income growth in the United States ahead of the rate of inflation and the level of employment has grown substantially over the past three months. Such dynamics indicates a growth in consumer activity, which clearly confirms the March report on existing home sales - real estate sales reached the highest level in the last 10 years. Why investors should pay attention to the index of real estate sales? Real estate is very expensive, and if people are actively bought a house, so they have enough money and they believe in "the future". Positive release from the CB will support the US currency.
EUR / USD recommendation 25/04/2017: Sell 1,0865 / 1,0910 and take profit 1,0774.
Forex. Pound Dollar forecast GBP / USD today 04/25/2017
Sterling was trading at 1.2756 -1.2859 in the flat the past four trading days, and it is likely today traders will see testing the lower boundary of this range.
One reason for the decrease in quotations - is the negative dynamics of the debt market. The 10-year British government bonds reduced to German and American, that usually puts pressure on the pound.
Another reason - a sell-off in the oil market. Black gold has renewed a three-week low and the bears in full control of the market. The nearest strong support for Brent will be the psychological level of $ 50 / barrel. decline in oil prices has a positive impact on the value of the dollar, because of the strong inverse correlation of the two instruments.
GBP / USD recommendation on 25.04.2017: Sell 1,2805 / 1,2840 and take profit 1,2755.
Forex. Dollar Yen Forecast USD / JPY today 25/04/2017
On Monday, the world's leading stock markets finished trading in a strong increase in prices that signals a steady "risk appetite". This is a positive factor for the pair of quotes and can be expected to increase the maximum Monday (110.46). It is likely, the dollar, the yen may show growth over one or several days. Then, players should not expect falling of quotations, and strong enough. Why such pessemistichny look at the current upward trend? Blame the dynamics of VIX fear index prices. The index on Monday fell more than 20%. On the one hand, this is good. Risky assets are supported, and the USD / JPY pair will move upwards. On the other hand, the VIX is close to its lowest level in 10 years, which would indicate a strong correction on the stock markets. Prior to this extremum index of fear left to fall to 14.2%. In turn, the correction in the stock markets will support the yen as a funding currency.
USD / JPY recommendation on 25/04/2017: Buy 109,60 / 109,10 and take profit 110,15.
Aleksandr Goryachev
Company analyst FreshForex
