Market is gaining momentum. It’s the dollar’s fault?

Morning Stock News

Gold   1693,50
(-3,45%)

EURUSD   1,0799
( -4,11%)

DJIA  24115
(-7,13%)

OIL.WTI  25,095
(-38,13%)

DAX   10609
(-14,01%)

The new trading week turns out to be quite interesting. The news about COVID-19 distribution is limited to dry statistics. Only WHO beats the alarm and registers a record 183 thousand infections per day. Does the virus not affect the economy anymore?


Gold

Gold

Apparently, investors have realized that in the current situation, as long as there are huge amounts of stimulus, markets will stay afloat in any situation. However, this state can be shaken at any moment, as soon as the help program starts to wrap up. Europe cannot deal with its internal problems in any way. In such a situation, the DAX will remain in a sideways trend until the EU Council can find consensus on a recovery fund. The American market is more and more interesting. After the fall at the opening, the S&P500 index started to gain momentum. Investors are ready to buy further. It is important that it is still above 3000, as well as above the daily SMA200. Probably, the growth of the American market will continue. Still, the elections are ahead and the political machine will hold the economy by all means.


Euro

Due to the weakness of the US dollar, the Euro is showing positive growth on Monday. However, the sideways trend is not canceled yet. The European currency has found a comfortable zone and is likely to remain in this range in the near future. On Monday, the pair EUR/USD rose to 1.1260.


Oil

WTI oil has come close to the resistance level of $40 per barrel and is trying to consolidate higher. The news background has a favorable effect on the price. Governments continue to soften quarantine measures, which stimulates consumption. Macroeconomic data also has a positive impact on the price. The growth will continue in the near future.


Gold

As we estimated, the gold is trying to break through the resistance level at $1750 per ounce on Monday. All it needs to do is hold on above that level. The dollar is very weak now and the move to the level of $1800 is quite close.


What’s waiting for us today?

09.30 Markit Manufacturing Index in Germany for June
10.30 Markit UK Service Sector Business Activity Index for June
16.00 US Richmond Manufacturing Index for June


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