For the last several weeks gas was skyrocketing at an enormous pace. It has gained more than 17% from August 18. What is the reason for such moves?
Goldman Sachs has bullish prospects on pound
2020-10-06 • Updated
Goldman Sachs advised investors to go long on the pound vs the euro. How far may EUR/GBP drop? Let’s find out!
The EU and the UK are planning to reach the Brexit deal in the coming weeks. Wall Street analysts anticipate that both sides will make an agreement as soon as early November, that’s why the British pound is likely to gain since it is really sensitive to Brexit developments. The President of the EU Commission Ursula von der Leyen and UK Prime Minister Boris Johnson have agreed on this weekend to continue talks over main sticking points like fisheries and aid issues. Once the market knows the outcome, the further pound’s further traction will be defined. Overall expectations are more positive, which is beneficial for the GBP. Among pound bulls are Goldman Sachs, Wall Street, and JP Morgan, but, for example, Nomura doesn’t rush nor to buy the pound, neither to sell it, waiting for more clarity in EU-UK negotiations.
EUR/GBP has entered the descending channel, proving the possibility of further pound’s strength. The pair has almost reached the upper trendline, that’s why there’s no more room for the pair to keep rallying up. Therefore, if it reverses from the high of July 27 at 0.9120 and starts falling, it may meet the support at the 200-period moving average of 0.9065. The move below it will drive the pair to Friday’s low of 0.9045. Resistance levels are 0.9120 and 0.9150. Keep an eye on further Brexit news, if you trade the pound!
Weaker recoveries were seen in both the UK manufacturing and service sectors, with the latter recording the greatest loss of momentum since July.
The US economic releases came in with much better than expected today, adding further evidence for the Federal Reserve, a day after the FOMC Meeting Minutes…
How will the new variant affect the markets and the economy? What is its relationship to inflation and interest rate hikes, and how will it affect those things?
Are you searching for trade opportunities for December 6-10? Here you go!
Both omicron and Powell’s comments increased volatility in EUR/USD. What to expect further?