The EU plans to intervene in markets directly to curb rising energy costs, threatening to push the Euro area's economy into a deep recession.
Bank of America: GBP Will Rise in 2021
2021-07-05 • Updated
The British pound has advanced in the first half of the year, especially against the euro. Will this trend sustain in the second part of 2021?
Bank of America has published its mid-year forecast on the GBP. The bank believes the pound has more room to rally up further. The reasons are the UK's successful vaccination rollout and the Bank of England hawkish pivot. The BoE is likely to raise interest rates in 2022, ahead of many G10 peers.
The group of Ten (G10) is made up of eleven (yes, it’s strange) industrial countries (Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom, and the United States) that meet on annual basis to consult each other and cooperate on international financial matters.
According to Bank of America, the British pound will mostly outperform the Japanese yen and the Swiss Franc - both currencies with ultra-low interest rates.
Besides, the UK PM Boris Johnson claimed that he would cancel the coronavirus restrictions, which would be positive for both the pound and UK stocks. Many global investors consider that the UK stocks are undervalued, suggesting the potential growth. By the way, you can trade not only US stocks, but also UK stocks with FBS. Today the US markets are closed due to the Independence Day holiday. Thus, it’s the perfect time to pay attention to UK stocks.
EUR/GBP has bounced off the 50- and 100-day moving averages and reversed to the downside. The move below the low of June 24 at 0.8530 will press the pair down to the next round number at 0.8500. The pair is likely to move down in the mid and long term. Still, if some fundamentals shock the markets and the pair breaks above the upper trend line at 0.8600, it may jump to 0.8650.
The oil prices rally and world central banks’ dovish monetary policy caused by the Covid-19 pandemic were the main reasons for current inflation growth…
Yes, oil prices are burning right now, and inflation is getting hotter along with it worldwide. However, the oil's bullish momentum is under threat.
For those who may be unfamiliar with Price Action trading, the horizontal arrows represent areas where the market structure was broken. As you can see in the scenario above, price broke below the previous low at the two marked instances
Let's start off with a look at the Daily timeframe on Bitcoin. We currently see price reacting to the rally-base-rally demand zone between the 15,600 - 14,300 price area. Price also seems to have found support off the trendline support as marked in the image above. Interestingly, this means the overall bias on BTCUSD is Bullish.
Central Bank Digital Currencies (CBDCs) are virtual national money. The idea of creating such currencies came to the authorities after the success of cryptocurrencies, which also exist only in digital form.