The last month of summer was the best August in three decades for the US stock market. The Federal Reserve is going to reduce unemployment and rebuild its economy. Will the markets be able to survive such a major rally without significant losses?
During the pandemic, capital was concentrated in the high-tech companies sector as well as the market for everyday consumer goods. If geopolitical risks increase in the world, or if the U.S.-China trade conflict gathers pace before the elections, there could well be a collapse in stock prices for major players. Everyone remembers the dotcom bubble, so you can’t rely on the IT sector alone.
On Tuesday, the EUR/USD pair tested the level of 1.20. Of course, this level cannot be passed from the first time, but the EUR now has all chances to overcome this serious resistance. In the current situation, the weakness of the dollar is affecting the growth of the pair, as the EU economy as a whole is still sluggish. A fall in the exchange rate may occur due to possible intensification of trade and economic conflicts in the world.
The oil market is virtually frozen and shows mixed dynamics. August oil has closed on the plus side, but the upward trend is fading. The level of $43 per barrel has been taken, but in a larger case this is a credit to the falling US dollar. The market is responding positively to any information regarding coronavirus vaccine development, as economic activity in many countries is still suffering from a pandemic. Ahead of this is data on oil reserves in the USA, which are forecast to decline, which will provide some price support.
On the first day of September, the main cryptocurrency is growing and trying to break through the level of 12000. If Bitcoin succeeds in securing itself above this level, the road to 14000 opens. Investors have a very positive attitude. After all, the statements of the US Federal Reserve and the weakening of the US dollar have benefited the cryptocurrency.
What’s waiting for us today?
03.30 Australia GDP since the beginning of the year
14.15 Change in non-agricultural employment in the USA for August
16.30 US crude oil reserves
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