After the meeting of the Bank of Japan, the JPY dynamic confirms the main points of it. The current form of monetary policy is really bearing fruit: macroeconomic indicators are improving, and market participants expect positive results from data on retail sales and industrial production.
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Since the beginning of the year, the EUR/USD pair has been under strong pressure from a number of factors, reaching the November lows of last year near 1.1000. The main reason for the decline is the continued strengthening of USD against most major currencies. Today, investors wait for the Fed's Interest Rate Decision. During this month, there were opinions regarding a possible easing of monetary policy, however, the current high positions of the national currency indicate the opposite, and the rate is likely to stay the same.
Today, during the Asian session, the USD/CAD pair is growing slightly, being corrected after yesterday’s active decline, as a result of which the dollar retreated from its local highs from December 11, 2019. Yesterday, USD was under pressure of poor US Durable Goods Orders data.
After a significant increase at the end of 2019, the GBP/USD pair entered a stage of tapering consolidation. In the second half of January, the price rose on favorable data on the labor market and major UK indices, while negative data on industrial production were published in the United States.
This week, the pair is dropping amid growing concern over the economic impact of an outbreak of coronavirus.
USD is showing moderate growth during today's Asian session, recovering from a decline the day before. The instrument adds about 0.1%, testing the level of 0.9700 for a breakout. US macroeconomic statistics released on Monday had a mixed effect on USD. New Home Sales for December fell by 0.4% MoM after falling by 1.1% MoM last month.
Today, during the Asian session, the AUD/USD pair shows an ambiguous dynamics of trading after a steady yesterday’s weakening.
Today, during the Asian session, the EUR/USD pair is growing slightly, being correcting after yesterday’s decline, which led to the renewing of local lows from December 2, 2019. Now, EUR has added about 0.04%, testing the level of 1.1020 for a breakout. The reason for Monday’s weakening of the euro was the poor macroeconomic statistics from Germany.
Last Friday, the GBP/USD pair moderately decreased, despite the release of positive preliminary data on business activity in the UK. After the publication, the price reached the level of 1.3170. Speculators immediately reacted to a sharp change in dynamics, exerting pressure through mass sales.
The USD/CHF pair has reached lows at 0.9600 and is consolidating within the sideways range. The annual World Economic Forum in Switzerland disappointed investors. Instead of discussing geopolitical risks and their impact on the global economy, participants devoted almost all the time to issues of gender equality, climate and the rejection of the use of disposable plastic bags.