Gold 1693,50
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EURUSD 1,0799
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DJIA 24115
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OIL.WTI 25,095
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DAX 10609
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The new trading week begins with news about the coronavirus. New outbreaks in China, as well as growing infection in the U.S. have a negative impact on market sentiment. Concerns about the second wave are very high.
EUR/USD
What are investors going to do next? So far we can see that the markets have been going down quite well over the last few weeks. We can consider that it was a necessary correction after a long rally. In summer, the volatility usually goes down. Traders go on vacation and have a rest. But it’s probably going to be a different summer. The S&P500 index is still above 3,000, which gives hope for growth. The DAX closed 0.3% below opening.
Euro
The Euro climbed high enough. The latest macroeconomic data shows that not everything is bad with the economy, but the local decline and slowdown of the economy is temporary. As soon as the situation with the pandemic is changed, production will recover quickly. EUR/USD has a wide enough range, in which it can stay for a long time. In the current situation, the correction to the level of 1.10 is more visible, from which there will be further growth.
Oil
The price of oil reacts very nervously to statements about multiple outbreaks of coronavirus in different countries. After six weeks of growth we should expect a correction. It is very likely that this correction will be fast and deep. On Monday the oil trades at $36.5 per barrel.
What’s waiting for us today?
05.00 Bank of Japan decision on interest rate
11.00 Business sentiment index of ZEW Institute for June.
14.30 Retail sales for May in the USA
16.00 Speech by Fed Chief Powell in Congress
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