Investors are still puzzled. On the one hand, yesterday’s data on the US residential market pushes investors to bet on the US dollar rise. However, the US president’s announcements concerning China are really perplexing.
Uncertainty in the market was caused by the US response to the Chinese new law about national security. At the moment, there are a lot of rumors about new US sanctions against China. Some analysts suppose that the US may ban the entry of important politicians of the Chinese Communist Party. Others think that the US may even arrest transactions of individual Chinese companies. In any case, escalation in tensions between the two largest world economies could somehow affect the whole world. It even may lead to a longer and more difficult global economic recovery.
Nevertheless, traders are waiting for the US GDP preliminary data that is slated for release tomorrow. The US will also reveal its claimant count change figures.
At the same time, ECB President Christine Lagarde said that the regulator was ready to increase its coronavirus stimulus program in the monetary policy conference meeting on June 4. After the news, traders decided to buy the single currency. Moreover, Christine Lagarde supposes that the eurozone economy may shrink by 8-12% that twice exceeds figures logged during the 2008-2009 financial crisis.
The euro/dollar pair was trading near the average level of the range of 1.0775/1.0885/1.1000. Later, the pair once again approached the upper limit. We can see that buyers are making an attempt to consolidate even higher. Notably, the pair reached the upper limit of the range for the fourth time during the last two months. It is quite possible that traders will remain focused on this limit. The quote may break it, only when it consolidates above 1.1040 on the 4-hour chart. However, the pair may bounce again.
Let’s take a look at the pound/dollar pair. After a 4-day stagnation, the pair showed surge of activity. After fluctuating near the area of 1.2150/1.2180 for some time, the pair failed to break it thus attracting attention of speculators. As a result, traders opened a lot of long positions allowing the pair break the area of 1.2240/1.2280. Later, the quote hit the high logged on May 19th. After that, the pair advanced to the level of 1.2350, which acted as an average deviation of the range of 1.2150//1.2350//1.2620.
Traders should pay special attention to the pair’s movement near 1.2350. The fact is that the pair’s trend depends on whether it breaks the mentioned level or not.
Thus, sell positions can be opened below 1.2280 with the target at 1.2250-1.2200.
Buy positions can be initiated, if the price consolidates above 1.2370 with the targeted level at 1.2420/1.2440.
That’s all for now. We keep monitoring the financial market situation. Subscribe to our channel. See you in several hours. We will take a close look at the US trading session.

https://www.instaforex.com

FX Analytics – https://www.instaforex.com/forex_analytics
Forex Calendar – https://www.instaforex.com/forex_calendar
Forex TV from InstaForex – https://www.instaforex.com/instaforex_tv

Forex charts – https://www.instaforex.com/charts
Instant account opening – https://www.instaforex.com/fast_open_live_account
Forex Trading Contests – https://www.instaforex.com/forex_contests

List of official InstaForex blogs:
https://www.facebook.com/instaforex
https://www.instagram.com/instaforex/

#forex_news #european_session #instaforex_tv

Esta web utiliza cookies propias y de terceros para su correcto funcionamiento y para fines analíticos y para mostrarte publicidad relacionada con sus preferencias en base a un perfil elaborado a partir de tus hábitos de navegación. Al hacer clic en el botón Aceptar, acepta el uso de estas tecnologías y el procesamiento de sus datos para estos propósitos. Ver Política de cookies
Privacidad