In today's release, we’ll cover the following topics:
The current week, without exaggeration, has become one of the busiest in the past few months. To begin with, yesterday it became known about the EU lawsuit against Britain for gross violation of the terms of the Brexit deal. Let me remind you that in London they voted for a law that completely contradicts the key trade agreement at the time of Britain's exit from the EU.
At the time of the appearance of information about the EU's readiness to sue, the quotes of the GBP/USD currency pair fell by 130 points in less than two hours, but after a while buyers managed to return the pair above the session highs. But despite the abnormally high volatility, the pair is still holding flat, indicating clear market uncertainty.
An additional destabilizing factor is the news that US President Donald Trump contracted coronavirus. He announced this news through his official Twitter page, and then a doctor from the White House confirmed this information, stating that the president and the first lady are doing well.
As Trump continues to live in the White House and carry out his duties, the reaction of the stock market and, as a result, the USD has been moderate. But at the same time, it is important to take into account the fact that at the time the news appeared, American exchanges were closed. Therefore, at the moment of the opening of the American trading session, the volatility of trading, including in the US dollar, may significantly increase.
An equally important event for the stock market and, as a consequence, the USD will be the publication of the unemployment report and Non-Farm. The disappointing data in the report may greatly weaken the interest of investors in the American economy, but no matter how paradoxical it may sound, in this case the demand for USD will grow. After all, sales of American stocks lead to an increase in real demand for cash.
I will conclude today's review with an analysis of the AUD/USD buy deal with a volume of 1 lot. A long position was opened at 0.7080 just after breaking through the resistance at 0.7075. Take Profit order was placed at 0.7180 - at the next technical resistance level. The profit on this trade was $1000.
Closely monitor the news background and be prepared for all the surprises of the market.