Protests do not stop. How long will the optimism last?

Morning Stock News

Gold   1693,50
(-0,32%)

EURUSD   1,0799
( -3,88%)

DJIA  24115
(-8,04%)

OIL.WTI  25,095
(-31,57%)

DAX   10609
(-15,24%)

On Wednesday, the optimistic mood of investors continued. No protests, do not interfere with the growth on stock markets. Wednesday, which was very rich in macroeconomic data, showed that this growth is not accidental.


DAX

DAX

On Wednesday we saw quite a lot of macroeconomic data, which determine the current situation in the world economy. Unemployment data in the US showed that the rate of unemployment has slowed down significantly and signs of stabilization are visible. Shares of manufacturing companies in the US are starting to grow as they are trying hard to compensate for past production losses. The DAX index rose to record levels in the last three months at 12487.


Euro

Trading on Wednesday set a new 11-week record for the EUR/USD pair. On the eve of the ECB meeting, investors are optimistic about the measures to expand the assistance in connection with the economic crisis caused by the coronavirus pandemic. The EUR/USD pair took the level of 1.12 and keeps growing. Many analysts believe that ECB will strongly expand its assistance and thus will support the economy. The Euro has only one strong level left at 1.13. Probably, once it reaches this level, the currency pair will start a certain downward correction movement.


British Pound

The British pound has shown excellent dynamics over the past two weeks. Although the last round of negotiations on Brexit was supposed to make adjustments to the price of these currencies, but investors believed that a recovering economy and weakening quarantine are more important than negotiations. The GPB/USD currency pair on Wednesday is at 1.2550 and keeps moving up. The important resistance level is at SMA200 at – 1.2660, where the down correction is very likely.


Gold

Against the background of strong growth of risk assets, on Wednesday gold did not resist and adjusted to the level of $1700 per ounce. Probably, many people may think that such a serious decline may put an end to future growth, but for gold it is quite a normal situation. While investors are trying to make money in the fast-growing US market, gold is waiting for its time. Sooner or later many will have to return to gold, as it is an asset for preservation and long-term investment of funds. All profits made on risky markets in any difficult situation pass into the assets of the safe haven. Growth for gold in the future is inevitable.


What’s waiting for us today?

10.30 UK Construction Business Index
13.45 Statement on ECB monetary policy
14.30 Number of initial applications for unemployment in the United States


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