Events forex investors today:
Japan Interest Rate Decision The Bank of Japan in January (previous value of -0.10%, -0.10% forecast).
Forex. The euro dollar EUR / USD forecast for today 31/01/2017
On Tuesday, trading forex is not expected to yield important macroeconomic statistics, today the trading day should be considered as a preparation before a strong movement of quotations on the Fed's decision on interest rates on February 1.
So where the market will go tomorrow night? The high probability of sales, as US economic growth rather stable and allows the regulator to make a number of positive statements. FED may raise inflation forecasts for this year and point to the possibility of increasing the key rate on March 15. It will support the greenback, and investors will buy the US currency. If March 15 FOMC rate does not increase, then the players will come disappointment and from the dollar as quickly start to get rid of. Here it can be assumed that large investors will be interested to sell the euro is not at the current levels and above. To drive up the market quickly, and then sweep down - this is a favorite tactic of currency speculators. Especially because this a good reason - a correction in global stock markets, after a sharp rise last week. The index of "fear" the VIX on Monday rose immediately by 15%, which is the highest growth rate since November 2016. Now there is only one question: what would be a strong barrier for the euro? Level 1.0718 or 1.0774?
EUR / USD recommendation on 01.31.2017: flat 1.0640 -1.0740.
Forex. The pound dollar GBP / USD forecast for today 31/01/2017
Two reasons for investors to sell Forex pair GBP / USD :.
The first reason for the bond market the yield differential of British and US 10-year government bonds is reduced, it is a bearish signal for the pound for pound.
The second reason, reduced "risk appetite" will put pressure on the exchange rate and the black gold that will increase the downward trend for the Briton. Market participants this week is worth waiting for a decline in oil prices to $ 54.5 / barrel for Brent - it can happen today, or tomorrow night on the publication of data from the US oil reserves. On the whole, the prospects of oil worth watching positively, investors more than once in Ut year will see the level of $ 60 / barrel. However, at first necessary to wait for the fall of quotations or in the area of 54-52 $ / barrel on expectations of increase was in the US interest rates.
GBP / USD recommendation: Sell 1,2500 / 1,2540 and take profit 1,2440.
Forex. dollar JPY USD / JPY forecast for today 31/01/2017
The Bank of Japan begins the first this week to disclose the results of its meeting on monetary policy. Tomorrow, the verdict will make the Fed and Bank of England on Thursday. Players should not expect any important announcements from the Japanese monetary authorities. Firstly, a gradual increase in average earnings in conjunction with the upward trend on the oil market will contribute to the growth of inflation, which seeks control. By itself, the devaluation of the Japanese currency is inflationary factor for the economy. I recall that in Q4 2016 the yen fell against the dollar by 14.1%. As noted earlier, the Fed could give the market a hint of tightening monetary policy, which in turn will cause a new portion of the devaluation of the yen. After yesterday's sell-pair on a background correction in the stock markets today, we can expect the demand for steam,
USD / JPY recommendation: Buy 113,50 / 112,99 and take profit 114,25.
Aleksandr Goryachev
Company Analyst FreshForex
