21.08.2020:EUR and GBP close week with drop. Outlook for EUR/USD and GBP/USD
Yesterday, investors were selling off the US dollar amid disappointing data on the US first-time unemployment claims. The fact is that the indicator again exceeded the level of 1 million claims. However, today, investors are showing great interest in the greenback. Traders are disillusioned with the preliminary estimates provided by the Markit group. Thus, business activity in the key sectors of the European economy failed to meet expectations. All indices, except for Germany’s industrial PMI, turned out to be below the forecasts. For example, in August, the eurozone composite PMI dropped to 51.6 points from 54.9 points. Such a slowdown was caused by the reintroduction of the restrictive measures in an attempt to contain the second coronavirus wave. Amid such fundamental data, the euro/dollar pair returned to the level of 1.1800. Thus, the pair is still fluctuating within the range and the level of 1.1810 acts as support that may reverse the pair. According to the chart, a short-lived pullback was replaced by a surge in the number of short deals. The level of 1.1800 is still the main obstacle to market participants. If the euro/dollar pair fixes below 1.1800, it may decline to the lower limit of the range located at 1.1700. According to the alternative scenario, the price may hover within the levels of 1.1810/1.1900. News from the UK turned out to be more positive. Thus, the UK services PMI reached the 7-year high. However, traders’ reaction was quite tepid. As a result, the pound sterling lost ground against the US dollar. During this week, the pound/dollar pair has been showing the best dynamic since the beginning of the month. The pair showed a fluctuation of 500 pips. Speculators also managed to benefit from the situation. On the trading chart, we can see that on the wave of the upward movement of the past day, the quote managed to return to the area of the local high of 1.3230/1.3265. This affected buyers and gave way to short deals. https://www.instaforex.com FX Analytics - https://www.instaforex.com/forex_analytics Forex Calendar - https://www.instaforex.com/forex_calendar Forex TV from InstaForex - https://www.instaforex.com/instaforex_tv Forex charts - https://www.instaforex.com/charts Instant account opening - https://www.instaforex.com/fast_open_live_account Forex Trading Contests - https://www.instaforex.com/forex_contests List of official InstaForex blogs: https://www.facebook.com/instaforex https://www.instagram.com/instaforex/ https://twitter.com/InstaForex #forex_news #european_session #instaforex_tv
Yesterday, investors were selling off the US dollar amid disappointing data on the US first-time unemployment claims. The fact is that the indicator again exceeded the level of 1 million claims. However, today, investors are showing great interest in the greenback. Traders are disillusioned with the preliminary estimates provided by the Markit group. Thus, business activity in the key sectors of the European economy failed to meet expectations. All indices, except for Germany’s industrial PMI, turned out to be below the forecasts. For example, in August, the eurozone composite PMI dropped to 51.6 points from 54.9 points. Such a slowdown was caused by the reintroduction of the restrictive measures in an attempt to contain the second coronavirus wave. Amid such fundamental data, the euro/dollar pair returned to the level of 1.1800. Thus, the pair is still fluctuating within the range and the level of 1.1810 acts as support that may reverse the pair. According to the chart, a short-lived pullback was replaced by a surge in the number of short deals. The level of 1.1800 is still the main obstacle to market participants. If the euro/dollar pair fixes below 1.1800, it may decline to the lower limit of the range located at 1.1700. According to the alternative scenario, the price may hover within the levels of 1.1810/1.1900. News from the UK turned out to be more positive. Thus, the UK services PMI reached the 7-year high. However, traders’ reaction was quite tepid. As a result, the pound sterling lost ground against the US dollar. During this week, the pound/dollar pair has been showing the best dynamic since the beginning of the month. The pair showed a fluctuation of 500 pips. Speculators also managed to benefit from the situation. On the trading chart, we can see that on the wave of the upward movement of the past day, the quote managed to return to the area of the local high of 1.3230/1.3265. This affected buyers and gave way to short deals. https://www.instaforex.com FX Analytics - https://www.instaforex.com/forex_analytics Forex Calendar - https://www.instaforex.com/forex_calendar Forex TV from InstaForex - https://www.instaforex.com/instaforex_tv Forex charts - https://www.instaforex.com/charts Instant account opening - https://www.instaforex.com/fast_open_live_account Forex Trading Contests - https://www.instaforex.com/forex_contests List of official InstaForex blogs: https://www.facebook.com/instaforex https://www.instagram.com/instaforex/ https://twitter.com/InstaForex #forex_news #european_session #instaforex_tv