The Weekly Focus of Currency and Commodities Market
The pound has shown extreme weakness due to a No deal Brexit, and a non- desirable interest rate talks after the GBP performed badly in May by losing 4% of its value against the USD and 3% against the EUR.To get more news about WikiFX, you can visit wikifx news official website.
It sank to a low of $1.2073, making it the third weakest currency, only slightly ahead of the NZD and Norwegian Krome.
The British pound broke down during the early part of the trading session on Thursday, slipping through the low of the shooting star during the day on Wednesday, and that suggests that we could go lower shorting the pound.
However, we have had a little bit of a bounce back during the trading session and that shows just how resilient and tough the British pound is trying to be.
Keep in mind that this pair is sensitive to the risk appetite of traders around the world, as the Japanese yen is considered to be a “safety currency based on the current pandemic.”
Furthermore, the British pound of course has to deal with the Brexit situation and all of the noise involving the coronavirus numbers in the United Kingdom.
Gold, a safe haven Commodity, dropped sharply in March due to the Pandemic as can be expected.
However, it rallied swiftly in April, trading above the $1700 mark as a result of concerns on COVID-19 fears from Investors.
The gold futures contract gained 0.37% on Wednesday as it continued to fluctuate after reaching new monthly high of $1,775.80 on Monday. It has retraced almost all of its downward correction from April 14 high of $1,788.80. The market is extending over month-long consolidation, as we can see on the Weekly chart:
The German Chancellor, Angela Merkel alongside French President Emmanuel Macron have agreed on a €500 billion recovery fund for the EU states worst hit by the COVID-19 pandemic.
Europe‘s response to the economic turmoil brought about by the global coronavirus shutdown is about the EU’s financial unity.
The EUR dropped 3.5% this year to $1.08, close to its lowest level against the USD since May 2017.
According to the European Commission Forecast, the Eurozone may head for the deepest recession in its entire history, with its Economy expected to contract 7.7% this year.
This reflects the damage caused by the COVID-19 pandemic, the European Southern states.