Forex Forecast And Cryptocurrencies Forecast For June 8 -12

First, a review of last week’s events:

EUR/USD

Beginning May 25, the euro paired with the dollar rose in price for nine consecutive afternoon sessions, which, according to Dow Jones estimates, was the longest period of continuous growth since April 2011.

The ECB's decisions allowed the European currency to soar to its highest level since March 20, reaching the height of 1.1385. Led by Christine Lagarde, the Central Bank has surpassed all market expectations by increasing the Pandemic Emergency Purchase Program (PEPP) by €600 billion to €1.350 trillion. This program will last at least until June 2021, and the proceeds received from the acquired bonds will participate in the process of reinvestment until the end of 2022. The ECB also kept the benchmark interest rate on loans at zero and the deposit rate at minus 0.5%. Thus, the ECB proved to be the only major regulator to continue the policy of quantitative easing (QE) last week, as well as one of the few central banks to undertake similar moves in June.

According to Lagarde, the QE emergency program should solve two problems at once: to help the Eurozone economy recover from the COVID-19 pandemic and act as a pillar to overcome market stress.

The euro zone economic reports published this week also played in favor of the euro, they turned out to be optimistic for the most part, and business activity indicators were revised upwards.

As for the dollar, it began to sink, in part due to the growing appetite for risky assets. And if it was not supported by statistics from the US labor market, the pair would have every chance to paint the tenth daily candle green. However, the unemployment rate fell to 13.3% in May against 14.7% in April, and the number of new jobs outside the agricultural sector (NFP) rose, amounting to +2.509K against a reduction of almost 21 million (-20.678K) a month earlier.
As a result, the EUR/USD pair finally finished the last day of the working week in the red zone, having stopped at the level of 1.1290;

GBP/USD

The British pound follows the euro for the third week in a row. One difference is that the Friday candle of June 5 also turned green on its chart. Starting at 1.2075 on May 18, the pair first breached the lower boundary of the channel 1.2165-1.2650, turning it from resistance to support, then reached its upper limit, and made another jerk to the north on June 05, taking the height of 1.2730 and thus adding 655 points in three weeks. Another correction then followed, and the pair put the final chord at 1.2665;

USD/JPY 

After a relatively quiet, by the standards of this pair, three weeks, against the background of the escalation of the us-Chinese conflict, it sharply went up in the past five days.

Relations between the two countries deteriorated after China approved national security laws in Hong Kong and Macau last month. The last step was Beijing’s decision to ban the United Airlines and Delta Air Lines from resuming flights to China, in response to which Washington, starting June 16, suspended Chinese flights to the United States.

And, in contrast to the euro and the pound, in relation to which the dollar was losing its position, it gained 180 points against the yen in five days. The maximum range of the pair’s fluctuations was 245 points, and on Friday June 5, it almost reached the symbolic height of 110.00. But it could not take it, and the pair ended the trading session at 109.60;

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Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is ...

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