Good and bad news | 20 August 2020

20 August 2020, USD/JPY

USDJPY trading plan:

Housing-sector activity bounced back strongly in recent months, likely boosted in part by the effects of low interest rates. Starts and building permit issuance for single-family homes, along with starts of multifamily units, increased significantly over May and June; however, these construction measures were still below their pre-pandemic levels. Sales of existing homes rose substantially over those two months, and new home sales also moved up on net. This is a positive signal for the dollar. In the interbank lending market, rates on dollar loans are starting to low again, it will negatively affect the value of the American currency. The three-month dollar Libor rate is below 0.25%. This indicates a surplus of dollars.

Trading recommendation: range 105.50 -106.40.

David Johnson
Analyst of «FreshForex» company
Agree with the review?
Traders' opinion:
Close
ปูมบันทึกอยู่ใน
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .