Forex Forecast And Cryptocurrency Forecast For September 28 - October 2

First, a review of last week’s events:

EUR/USD

The overwhelming majority of experts (75%), supported by the oscillators indicating that this pair is overbought, expected its correction to the south. The argument was that the pair ended the week near the strong resistance zone of 1.1900 on Friday, September 18. The above scenario came true 100%, and finally breaking through the mid-term support at 1.1700, the EUR/USD pair flew downward last week, finding the local bottom at 1.1610.

There are several macro-reasons for the growth of the dollar and the fall of the euro. First, it is the deterioration of the epidemiological situation in the EU countries. Secondly, skepticism about the prospects for the recovery of the American economy. Fed Chairman Robert Powell has once again urged the government to discuss the issue of additional incentives in the framework of QE. We must not lose sight of the situation with the growth of the yield on US government bonds. All this made investors once again turn their backs on the stock market and commodities and think of the dollar as a protective asset. As a result, active buying of the American currency followed, the DXY index, reflecting the value of the USD against a basket of major currencies, went up sharply, reaching the height of 94.70, and the EUR/USD pair finished at 1.1625;

GBP/USD

First, a few words about a non-standard pair, BTC/GBP. Rather, about what will happen to bitcoin if the Bank of England decides to lower the interest rate to negative values. Recall that at the last meeting, on September 17, the Bank's management did not adjust this rate, but it became clear from the published transcript that this is not excluded and could happen in the foreseeable future.

The appearance of such a news report has not been overlooked in the crypto sphere. Billionaire and bitcoin investor Tyler Winklevoss stated immediately that “if the Bank of England decides to move to negative interest rates, they will pay extra if you borrow money from them. It is difficult to imagine a better motive for investors to start taking out such loans and investing in bitcoins for a long time."

Great prospect for Winklevoss and the core cryptocurrency. But so far this has not happened, let's return to the GBP/USD chart. On Monday-Tuesday, the pound was retreating facing the American currency onslaught, however, the pair moved to a sideways movement in the second half of the week. Despite the fact that the UK, like France, reported a record increase in the number of infected with the coronavirus, the new government employment program helped, unlike the euro, to keep the British currency from further falling, allowing it to complete the five-day period at 1.2745;

USD/JPY

As expected by 40% of analysts, the pair was unable to gain a foothold in the 104.00 zone, after which it went up 155 points. The week's results showed that investors at this stage decided to consider the dollar as the main protective asset, not gold or yen. Evidence of this is the sharp change in the correlation of the Japanese currency with the volatility of US stock indices, which determine the rise or fall of risk sentiment. The result of the last five-day period was the return of the pair within the two-month channel 105.20-106.55 and the final chord at 105.57;

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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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