Forex Forecast: Pairs In Focus - Sunday, August 2

The difference between success and failure in Forex trading is very likely to depend upon which currency pairs you choose to trade each week, and not on the exact trading methods you might use to determine trade entries and exits. The current market environment has changed from one of crisis to a questionable rebound or recovery, despite the continuing growth in the coronavirus pandemic which is still sweeping the world.

Big Picture 2nd August 2020

In my previous piece last week, I saw the most attractive trade set-ups as likely to be long of Gold and Silver in U.S. Dollar terms as each half of one unit, and long of EUR/USD as another unit. This was a very profitable call, as gold rose by 3.89% over the week, Silver by 7.23%, and the Euro by 1.14%. This produced a very strong overall result for the week of a 6.70% portfolio gain.

Last week’s Forex market saw the strongest rise in the relative value of the British Pound and the strongest fall in the relative value of the Swiss Franc.

Fundamental Analysis & Market Sentiment

The world is not coming to an end, but we are living in an extraordinary time of global health crisis, the magnitude of which has not been seen in over one hundred years. The vast majority of people are going to survive and be healthy, yet the impact of the crisis still dominates the global economy, as the virus is appearing to be resurgent even in countries that had initial success in suppressing its spread.

Last Friday saw daily new confirmed coronavirus cases hit just a fraction below a new all-time high, at 289,329 confirmed cases. This is a sign that globally, the wave of disease is still advancing to a peak.

We have seen the epicenter of the global coronavirus pandemic move into Latin America, although the U.S.A. has overtaken Brazil to again become the country with the highest average number of daily deaths from the virus. The rolling averages of deaths have decreased significantly in Europe. However, the U.S.A. has seen a sharp increase in new cases over recent weeks in many states, with the worst-affected states in the Midwest. Cases are also rising in Asia, especially India.

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Chee Hin Teh 1 week ago Member's comment

Many thanks for your wisdom