ONLINE FOREX BROKER
2020-06-29 • Updated
Does the pair still have the potential to the upside?
The British pound has been the worst performing major currency amid the coronavirus pandemic. The main reason is that investors have started to increasingly correlate it with risk. That’s why, fears of the second virus wave pushed it down. The global amount of coronavirus cases has exceeded 10 million this weekend. Investors are concerning about the potential virus resurgence in Leicester.
Moreover, Brexit negotiations weigh additional pressure on the pound. The overall situation over the Brexit deal is uncertain as it hasn’t been any breakthrough yet in the EU-UK talks. The British economic recovery is slower in comparison with European countries. Also, the Bank of England cut the quantitative program too early, that had a negative impact on the GBP. However, the central bank pledged to increase it, if needed. So, it’s just a matter of time.
Unlike the GBP, the euro is more attractive for investors. It has even outperformed the US dollar. The Eurozone has the best coronavirus outlook. Since the whole market sentiment is driven by the COVID-19 developments, EUR has gained. Moreover, investors are optimistic about the European Central Bank recovery fund. If the German chancellor Angela Merkel and the French president Emmanuel Macron make a progress in this deal, EUR may rise. We’ll know on July 17-18 at the EU summit.
The EUR/USD is approaching the 61.8% Fibonacci retracement level at 0.9200. If it breaks it through, it will surge further to the next resistance at 0.9340. Support levels are at 50% and 38.2% Fibo levels – at 0.9100 and 0.9000, relatively. Some analysts consider that it’s overbought, but others still have bullish prospects.
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 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.
Hey guys, this is the last full trading week in May, and many forward-looking individuals like myself are already preparing themselves to seize whatever opportunities June may have in store. On this note, I will review a few commodities that have satisfied my quest for swing-trading opportunities in the coming month. Follow me!
The Bank of England (BoE) has dramatically shifted its economic forecasts. They no longer expect a recession in the UK and have upgraded their growth projections. This year, the BoE predicts GDP growth of +0.25%, a significant improvement from previous expectations. Next year's forecast is even more optimistic, with a projected growth of 0.75%.
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