Stocks especially tech ones dropped on Tuesday on concerns over inflation. Gold is viewed as a hedge against inflation, that’s why it’s trading now near the three-month high.
EU Economic Forecasts are eyed by traders
The EUR might be pressed down by EU Economic Forecasts on February 11 at 12:00 MT time.
What will happen?
The European Commission will make a report on Thursday, where it will share its long-term economic outlook. This time, investors don’t expect to hear something encouraging from authorities as the EU heads for a double-dip recession. The International Monetary Fund downgraded its projections for the Euro Area from 5.2% to 4.2%. It was caused by rising infection cases, new virus variants, longer lockdowns, and, more importantly, vaccine delays. According to ECB President Christine Lagarde, the recovery will take much more time than it was initially expected.
How to trade on EU Commission’s report?
- If the European Commission gives positive economic projections, the EUR will rise.
- Otherwise – drop.
Instruments to trade: EUR/USD, EUR/JPY, EUR/GBP
What's moving markets on Friday? Read in the fresh report!
Elon Musk, Tesla’s founder and CEO, said the company wouldn’t accept Bitcoin as payment any longer. As a result, BTC/USD dropped to $45,300, the low unseen since March.
The USA will post Retail Sales and Core Retail Sales on May 14, at 15:30 MT time.