Home »

Popular Videos

Popular Videos

Forex News: 16/10/2020 - Wall Street storms back, but currencies don't play along

Forex News: 16/10/2020 - Wall Street storms back, but currencies don't play along.

19.102020: EUR and GBP gain momentum. Outlook for EUR/USD and GBP/USD

Monday is supposed to be quite a calm day despite the fact that several representatives of the ECB, including Christine Lagarde, will provide a speech. Analysts do not expect any significant announcements. Nevertheless, the European currencies showed a jump. The pound sterling turned out to be the first to start gaining in value. This could be triggered only by changes in the Brexit issue. The fact is that Boris Johnson has made an announcement that contradicts the speech he provided on Friday. Thus, the UK Prime Minister has said that London is ready to make adjustments in the Internal Market Bill in order to reach an agreement with the European Union. Of course, such news has boosted the British pound and the euro. However, it is still unknown what changes will be made in the bill. That is why after a rise, the market will wait for another portion of comments that will shape sentiment of market participants. Investors are likely to get new information only tomorrow. The pound/dollar pair is still under the speculative influence that increased amid the news flow. At the beginning of the European session, the pound/dollar pair returned to the level of 1.3000. If the price consolidates above 1.3000, it may hit the local high of 1.3080. However, traders may close their long deals soon that could lead to a pullback. Trading volume may drop between such levels as 1.3000 and 1.3080. At the same time, the euro/dollar pair also climbed towards the high of 1.1746 logged last Friday. If the price consolidates above 1.1750, it may jump to 1.1770. Otherwise, the pair may drop to 1.1700.