Wednesday morning is seeing the euro consolidating gains made in the aftermath of the European Summit, reaching a 17-month high versus the dollar. The EU leaders issued a powerful message; after almost a decade of doubts over the ability of the different member states to show solidarity with each other and extend integration to the fiscal level, that is exactly what was delivered. The European rescue fund may be a game changer for the European Union and for its currency. At the same time, the overall market sentiment remains positive, boosted by news of good progress being made in the quest for a coronavirus vaccine. This appetite for risk is negative for the dollar and other safe haven currencies, further enhancing the vitality of the euro.
Ricardo Evangelista – Senior Analyst, ActivTrades
Investors’ hunger for gold remains unsatisfied with the bullion price skyrocketing in the last few days to the highest in 9 years. The price has also achieved historic levels in many other currencies, reaching 50,000 Indian rupees per 10 grams for the first time while in USD the price surpassed $1,850, confirming its solid bullish trend.
In this scenario, with growing expectations for a quick economic recovery, silver seems to be the main winner, with the price jumping close to $23, before slowing down to $22. We are in a state of euphoria for this precious metal, as its price is up 90% from the bottom reached just four months ago in March’s panic selling.
Carlo Alberto De Casa – Chief analyst, ActivTrades