ONLINE FOREX BROKER
2020-11-23 • Updated
The pound gained due to upbeat UK’s PMI and vaccine news. Let’s analyze the chart.
Today is the day of PMI reports from EU countries, the UK, and the USA. The Eurozone PMI report came out mixed: the growth of the manufacturing industry slightly exceeded expectation, whereas services rose less than expected. There is no surprise as bars, restaurants, and businesses in the hospitality and tourism sectors have really tough times these days. Bloomberg has even claimed that the fresh virus resurgence pushed the euro area into another contraction. At the same time, UK’s PMI reports beat estimates.
UK Prime Minister Boris Johnson claimed that he is ready to make a political intervention to boost the Brexit development. His aim is to reach a deal by the next week. That news increased the demand for the pound as well as the optimistic vaccine report of the AstraZeneca/Oxford University. In comparison with vaccines of Moderna and Pfizer, this one has a lower efficacy rate but still offers many advantages. It’s cheaper, faster to produce, and easier to store.
The vaccine news and upbeat UK PMI reports drove the GBP higher, and therefore EUR/GBP lower. The pair is trading inside of the descending channel. Today it has reached the strong support of 0.8870, which it has failed to reach many times this year, that’s why the price pulled back. If it jumps above the high of October 10 at 0.8930, it may rise to the next resistance of 0.8957. Support levels are 0.8870 and 0.8850.
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
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.
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…
Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.
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