The strong decline of stock markets on Thursday did not continue on Friday. It seemed that there would even be a bounce, but by the end of the trades the bears still sold down. As a result, the S&P 500 index closed only slightly above the values shown on Thursday.
But what happens next? Yes, investors have realized that interest rates will stay around 0 for a long time. But on the other hand, it became clear that new money will not be printed anymore. And then there’s talk of a second wave of coronavirus, while many countries have not yet coped with the first. This week will be crucial in answering that question.
The Euro continues its downward correction. Potential support is only visible at the level of 1.10 on the EUR/USD pair. By the way, 200 daily moving average is in the same place.
Participants of the Forex market should remember that in summer, most currency pairs are in flat, and trend movements occur only in extraordinary events. We will not see anything new, obscured by the coronavirus theme, until autumn, so do not wait for strong movements to the level of 1.20 or parity.
When you look at the gold chart, it seems like all this has happened before. Indeed, by scrolling the chart to the left, we will see 3 similar situations in 2020, when the yellow metal price was in range for a very long time. Sooner or later, it would break through up, move and a new range would appear. This is exactly what we see on the chart now. Large investors are waiting for another jump to absolute price highs and then to $2,000 per troy ounce.
What’s waiting for us today?
04.00 Retail sales in China for May
04.00 Industrial production in China for May
11.00 Trade balance in the European Union for April.
14.30 New York Manufacturing Index for June
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