The same story continues. Once again, we see fall of almost all currencies against dollar due to decline in energy prices and collapse of stock markets. Yesterday’s daily fall of American DJI and S&P500 has reached a record level this year. Only euro and yen grew as most actively used funding currencies for last year. Now there are no signs that this situation will change.
Today there are no grounds, which are able to change the state of things. Speaking of notable events of this day, there is annual GDP of Germany and the Bank of England session on monetary policy. GDP can provide some support to euro, still it won’t have global influence on the market. Under current conditions outcomes of BoE session will be local and will influence only pound. However, changes aren’t expected in regulator’s policy. Hopes for increase in rates are already forgotten, new horror story has appeared for pound – the referendum on exit from the EU, though there is a whole year till this moment and surveys show that these concerns are exaggerated. Current movements are just strengthening. This often happens in the market before great correction. We presume that we will see it at stock and trade platforms in the nearest future.
Support at 1.0800 and fall of stock indices facilitated euro’s bounce to 1.0900, short-term indicators have reversed again. In the situation of frequent change of direction it is difficult to find a point to enter the market, so we continue to observe staying out of the market. We’d like to highlight one interesting moment – in crosses euro has formed bullish trend with almost all currencies, except yen. It doesn’t guarantee that the common currency will grow, still, we assume that it makes sense to be cautious about pair’s sales at this moment.
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