EUR supported by the European Commission
The EUR made a significant rise on the news of the stimulus expansion. Will it last long?
UK currency dives
On Friday, the UK currency declined on news that Spain and Great Britain have failed to come to a compromise on Gibraltar after the United Kingdom departs from the EU.
As a matter of fact, the currency pair GBP/USD went down by 0.38% trading at 1.2828.
Spain Prime Minister Pedro Sanchez tweeted that the country’s cabinet will always defend the national interests.
By the way, not so long ago Spain pledged to veto the draft Brexit pact scheduled for a vote on Sunday in case the two countries couldn’t come to a compromise over the British territory.
The Rock appears to be just one of the numerous challenges on the agreement. The Spanish have asked Britain to provide a solution to a great number of Spanish employees crossing the border every day.
In addition to this, the common currency went down due to the fact that signs indicated decelerating economic surge in the euro zone. The currency pair EUR/USD went down by 0.44% being worth 1.1352.
Euro zone business surge speeded down much faster than anticipated in November. That’s what follows from the purchasing managers index poll.
The numbers will probably be a concern to the European Central Bank. By the way, the given major financial institution is generally anticipated to slow down its asset buying program already in December.
Aside from that, estimating the greenback’s purchasing power against a number of its key counterparts the USD index went up by up to 0.14% being worth 96.722.
Trading in the United States is supposed to be thin due to the fact that financial markets were unavailable on Thursday for the Thanksgiving holiday. By the way, stock markets are going to close at 1:00 PM ET, while the bond markets will be absolutely unavailable after 2:00 PM ET.
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May 2020 forex season trading
April seasonal patterns weren’t supposed to work, but somehow they did. Even a strong fundamental issue such as the global recession amid the coronavirus couldn’t overwhelm it. That’s why May seasonal patterns may work as well.
GBP: April gains undone
The first days of May suggest the month will be risk-off for the GBP/USD. Here is why.
Latest news
Big day for USD
The US NFP will be published on August 7 at 15:30 MT time.
Main market movements on August 6
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
GBP is in focus
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…
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