Favourite pairs:

GBP/JPY        bearish           can reach      138.9

EUR/JPY        bearish           can reach      119.9

Other pairs:

USD/CHF       bearish          

 For investors trades next three months:

GBP/JPY        bearish           can reach       136.8

USD/CHF       bullish            can reach       102.1

AUD/USD       bearish           can reach       0.75

EUR/JPY        bearish           can reach       118.1

 The common currency got a really nice double boost this week from central banks, with certainly political woes taking a back step, but also present in the EU. The EUR/USD pair is poised to close the week near an over 1-month high achieved for this Friday at 1.0782, with scope to extend its gains during the upcoming days.

The other event that backed the euro was an interview given by Ewald Nowotny, the Austrian Central Bank governor and a member of the ECB’s Government Council. He spoke very openly about discussions within policy makers over raising rates in the EU and ending the QE program. Nowotny confirmed what Draghi refused to discuss about in the latest ECB’s press conference, that is, that the central bank could begin retrieving easing sooner than 2019.

EUR/USD Forecast: EUR rally set to extend, but 1.1000 is still too far away

In the EU, there were two big headlines that fueled the EUR’s rally: the first was that the far-right failed its first European test. Dutch Elections led to a triumph of the ruling party, who got 33 chairs, while far right Wilders got 20 seats, less than what polls suggested ahead of the event. While Netherland’s elections are indeed not as relevant as German or french ones, it was taken as a barometer of people’s sentiment towards more EU exits, within the region.

Yellen and Co. had largely anticipated the price rates hike delivered this past Wednesday, which was fully priced in ahead of the monetary policy meeting. The accompanying statement surprised to the downside, being far less hawkish than predicted, as the US Central Bank confirmed no goals to fasten its tightening pace while assuring that they may not need too many hikes to reach what they consider a neutral level.

The EUR/USD set is seen favourable for this upcoming week by 50% of the surveyed specialists, versus simply 17% on the previous week, when 75% were defeating for a bearish relocation. In the longer run, nevertheless, the buck still regulations, with over 60% of investors seeing it dropping after a month. Still, the market has actually updated its last target, currently seen at 1.0558 in a three-month sight, versus previous week’s target of 1.0456.

 The expectation for the GBP/USD set continues to be adverse, as the Brexit impends, as well as financiers are not going to purchase the Extra pound. Bears are a big bulk in all the moment frameworks examined, with both still targeting 1.2178 in a three-month sight, a few pips over the previous one, although the danger of a break listed below 1.2000 has actually raised.

 When it comes to the USD/JPY, both is seen climbing from the present 113.00 area, yet while the variety of bulls have actually enhanced, the ordinary target cost continues to be reduced, with both seen at standard at 114.30 in a month and also at 114.81 in a three-month sight, practically, the very same degrees seen recently. Breaks listed below 110.00 are considered as phenomenal for this future quarter, while 120.00 is beginning to look like a possible favourable target amongst one of the most positive.

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