Forex forecast for today 21/10/2016: Investors - sell EUR / USD, buy USD / JPY!

20 октября 2016 - Fx4News

Forex. Weather forecast on October 21, 2016

Traders Highlights today:

11.00 MSK. Japan: The head of the Bank of Japan Haruhiko Kuroda will deliver a speech.

Forex. Currency pair EUR USD forecast EUR / USD today 21/10/2016

Euro knocked by the ECB - were filled yesterday informlenty such messages. Quotes currency of the European Union and indeed closed trades minus 0.4%, but is at fault in this European regulator?

And can the ECB and not being, Mario Draghi said nothing unusual. Chapter regulator reiterated that low interest rates and QE continue until March 2017, or longer if needed. He pointed to rising inflation in the medium term. Media reported that investors expect the alleged collapse of QE, from the December meeting, and since Draghi is denied, the market was disappointed in the euro. Although it is not clear which of investors expect reduction in the stimulus package in December, when inflation in the euro zone for the first time in 22 months, reached a level of 0.4% y / y. Just when the ECB began to receive the first positive signals, which are still not enough to collapse QE. So why, then, the euro fell toThursday?

Perhaps this is not the fall of the euro, and to the growth of the dollar index basket as a whole. According USDX stable upward trend and immediate strong resistance area is located at the level of 98.59, which implies a decline in the EUR / USD to the 1.0900 level. Why is increasing the dollar index? Because the US Federal Reserve is the only central bank in the leading quartet, who are going this year to raise interest rates. It is impossible to ignore the dynamics of the credit markets, where the yield of the German of their 10-year government bonds fell sharply in British and American, which is negative for the euro.

EUR / USD recommendation : the Euro Players should sell the pair eur usd Sell 1,0940 / 1,0970 with the aim of take profit 1,0900.

Forex. The currency pair Pound Dollar forecast GBP / USD today 21/10/2016

Players with bucks a pound today, the forex is waiting for a mixed background. Positive on the debt market can support the British quotation. On Thursday, the yield on 10-year British government bonds has grown to the German and American, it increases the attractiveness of investments in the assets of Albion. Another positive - a reduction of cross-rate quotations EUR / GBP, which will support sterling paired with greenbacks. Although the oil commodities market yesterday closed in the "red zone", with losses of more than 2% and today this dynamic is likely to survive, that will put pressure on the pound because of the strong historical correlation between two instruments. Why oil today may continue to decline? There are two reasons for this? First, growth of the dollar traditionally has a negative impact on energy costs. The second, on the eve of Nigeria stated that it reduces oil export prices. Nigeria begins dumping to attract customers and increase market share.

GBP / USD recommendation : Traders pound with bucks today in the forex market should not expect sideways trading 1,2190-1,2300.

Forex. Currency pair yen dollar forecast USD / JPY today 10/21/2016

As the dollar yen pair correction came to an end, and we can confidently talk about the trend of growth, there are two reasons.

The first reason , the foreign exchange market grows trend in Aksu. The differential in yield of US and Japanese 10-year government bonds is extended, which increases the attractiveness of investment in assets States. Overstock product market should not be left without attention: energy and metals on Thursday closed in the "red zone", which has a positive effect on the course of American, as raw material costs are denominated in US dollars.

The second reason, futures on the Japanese stock index gained weight on the eve of 1.6%, and reached a new peak in the last 5.5 months. Taking into account the reduction of fear for the Japanese market index Nikkei Volatility to their lowest levels this year and falling S & P 500 VIX Index - a rising trend in the stock market to continue, which will negatively affect the yen as a funding currency. Today, in the midst of the European trading session, the head of the Bank of Japan will perform. H. Kuroda can give hints to the possibility of further easing of monetary policy at a meeting on December 20 if inflation continues to remain in the negative area, it may reassure bulls on building long positions.

USD / JPY Recommendations : Players on the dollar with the yen today in forex trading is to buy a pair Buy 103,90 / 103,60 with a view to take profit 104,40.