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Dollar licking its wounds, gold shines, US coronavirus cases eyed after Trump’s U-turn

The US dollar is licking its wounds, precious metals are holding their massive gains while stocks are stable. Markets have been encouraged by the EU recovery accord, vaccine hopes, and progress on the US fiscal stimulus. Updated COVID-19 statistics and US politics are of interest.

The dollar is attempting to stabilize after tumbling on Tuesday, decoupling from stocks that only marginally edged higher. There are several factors behind teh dollar’s weakness.

EUR/USD surged to 1.1547, the highest since January 2019, after the EU agreed on €750 billion recovery fund. While several market participants criticized the compromise, others praised leaders, which also moved the seven-year EU budget forward.

Christine Lagarde, President of the European Central Bank, is set to speak later in the day. She will likely comment on the agreement that she had urged.

Earlier in the week, several companies such as AstraZeneca, Pfizer, and Synairgen reported progress on developing a vaccine or a cure to coronavirus, boosting markets.

Gold has been extending its rapid gains, hitting a near nine-year high at $1,865 before consolidating some of its gains. Bullish comments from Citi , monetary and fiscal stimulus have been underpinning the increase.

President Donald Trump made an abrupt U-turn on coronavirus, saying that the situation will get worse before it gets better and urging fellow Americans to wear masks. In his first press conference on the topic in months, he acknowledged that some areas in the US are suffering more than others and refrained from repeating his claims that it will “just disappear.”

GBP/USD is trading above 1.27, carried higher by the greenback’s weakness and despite rising tensions between the UK and China over Hong Kong and Huawei. US Secretary of State Mike Pompeo praised Britain’s tough stance while visiting London.

Brexit: THe Telegraph has reported that the UK is close to abandoning talks amid the impasse in talks with the EU. Negotiations continue with many expecting a breakthrough only closer to year-end when the transition period expires.

Australian preliminary retail sales rose by 2.4% in June, lower than in May but up 8.2% on the year. AUD/USD is trading well above 0.7140, mostly benefiting from the risk-on mood and dismissing the ongoing lockdown in Melbourne where the number of cases remains stubbornly high.

USD/JPY is trading just below 107 as the dollar retreats. Coronavirus cases remain elevated in Tokyo and local authorities are considering new steps. Infections are on the rise also in Hong Kong, albeit from a low level. New measures are planned in the city-state.

WTI oil is trading above $41, close to the recent four-month highs, as OPEC+ continue depressing oil output.

https://www.fxstreet.com/news/forex-today-dollar-licking-its-wounds-gold-shines-us-coronavirus-cases-eyed-after-trumps-u-turn-202007220608



According to Trading Central (3rd party RIA) the EURUSD is long positions above 1.1280 with targets at 1.1565 & 1.1680 in extension.

* Past performance is not a guarantee of future performance

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10833494

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 1.1680
1€ 3,333.33€ 1,666.67€ 1,213.80
5€ 16,666.67€ 8,333.33€ 6,069.00
10€ 33,333.33€ 16,666.67€ 12,138.00
25€ 83,333.33€ 41,666.67€ 30,345.00
50€ 166,666.67€ 83,333.33€ 60,690.00

According to Trading Central (3rd party RIA) the USDJPY is short positions below 108.20 with targets at 106.00 & 104.50 in extension.

* Past performance is not a guarantee of future performance

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10829302

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 106.00
1€ 2,888.50€ 1,444.25€ 688.50
5€ 14,442.52€ 7,221.26€ 3,442.50
10€ 28,885.04€ 14,442.52€ 6,885.00
25€ 72,212.59€ 36,106.30€ 17,212.50
50€ 144,425.19€ 72,212.59€ 34,425.00

According to Trading Central (3rd party RIA) the GOLD is long positions above 1790.00 with targets at 1885.00 & 1970.00 in extension.

* Past performance is not a guarantee of future performance

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10833336

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 1885
0.5€ 4,036.46€ 2,018.23€ 1,085.07
1€ 8,072.92€ 4,036.46€ 2,170.14
5€ 40,364.58€ 20,182.29€ 10,850.69
10€ 80,729.17€ 40,364.58€ 21,701.39
20€ 161,458.33€ 80,729.17€ 43,402.78