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Daily market commentary: The euro is recording gains, hitting a four-month high versus the US dollar



FOREX

The euro is recording gains versus all other major currencies, hitting a four-month high versus the US dollar as the European summit goes into extra-time. The leaders of the 27 countries, divided in two blocks with each defending opposing views over the size and shape of a proposed recovery fund, embarked on marathon talks on Friday to decide the future of the package. No agreement has been reached so far but the unusual extension of the discussions into Monday indicates a willingness by the two opposing camps to reach a consensus which, if grasped, could help create a more optimistic outlook for the euro and the Union itself.

Dollar Index

Ricardo Evangelista – Senior Analyst, ActivTrades


GOLD

Gold has started the week in green once again with the spot price holding resolutely above $1,800. This confirms investors’ huge interest for the yellow metal, while volatility remains low.

The price is less than $10 from the 9-year-peak reached last week at $1,818. A clear breakout above this level could open space for further rallies, while at this stage there are no correction signals as investors continue to buy gold to cover their portfolio against the risk of new falls on stock markets.

Carlo Alberto De Casa – Chief analyst, ActivTrades

daily market analysis

EUROPEAN SHARES 

European indices had a mixed opening mixed on Monday, with the energy and financial sectors weighing on most benchmarks as traders brace for another busy week. While the direction of European stocks remains uncertain this week, market volatility is likely to be on the rise. Indeed, most investors are patiently monitoring the discussions between EU leaders about an additional €750 billion recovery package. Even if these renewed stimulus measures may not be fully priced in yet, market operators remain quite confident about it, making new highs possible for EU markets later this week. In addition, investors’ trading decisions will also be influenced by a new batch of corporate earnings this week with reports from Blackstone Group, Microsoft, UBS and Unilever looming. However, further downside pressure may also be felt on global stock markets this week as coronavirus cases continue to rise and the likelihood of renewed lockdowns in many areas remains a concern.

CAC 40 daily chart

Pierre Veyret– Technical analyst, ActivTrades


Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

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Daily market commentary: The euro is recording gains, hitting a four-month high versus the US dollar

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