The pound is near the day highs | 16 January 2015

 Euro

The US dollar rose against major currencies amid the traders’ fears decrease about the global economy and deflation prospects. Expectations that the ECB will begin the QE quantitative easing program soon are growing. This program is planned to reduce investors' concerns about the eurozone deflation and weaken the European currency more.

The November Germany's trade balance can fall from 20.6 billion euro to 19.4 billion, still it can rise to -4.6 billion euro to -4.5 billion in France. The industrial production volume for November in Germany and France are expected to increase by 0.4%.

Trading recommendations

There is a correction on this pair When is over the pair is back to the main scenario. So it is now recommended to sell with the first target of 1.1700-1.1720. If the first target is overcome, shorts will be relevant for 1.1480-1.1500.

Pound

The US non-farm report can have an impact on the pair GBP/USD dynamics. The pair is under pressure due to the fact that the weak UK data that show the economic growth and inflation slowdown that moved the traders’expectations about the interest rates increase by the Bank of England at a later date. In addition, widespread positive attitude towards the dollar puts some pressure on the pair. The UK industrial and the manufacturing industry production data will be published this week.

Trading recommendations

There is a correction on this pair When is over the pair is back to the main scenario. So it is now recommended to short with the target of 1.4920-1.4950.

Yen

The Japanese yen grew by 40 points, moving behind the US stock market growth (S & P500 + 1,78%). Today the Nikkei225 adds 0.64%. There are their own reasons for the Japanese market growth. Thus, Fast Retailing Co, the largest retailer, reported about the profit growth by 40% for the quarter, Japanese supermarket chains Maruetsu operating income for the year grew by 170%. Kawasaki Heavy Industries increased its profit by 17%. Perhaps the Japanese market grew up faster, but it restrains the Chinese inflation data.

Trading recommendations

There is a correction on this pair When is over the pair is back to the main scenario. So it is now recommended to buy with the first target of 121.10-121.30. If the first target is overcome, then the new target for the long positions will be the level of 121.80-122.00.