EUR/USD: Whopping gains to extend after White Monday


EUR/USD has hit the highest level since March amid optimism in Europe, as some European traders returned from a long weekend with enough energy to push the euro higher – and for good reasons, according to FXStreet’s analyst Yohay Elam.

You can't miss the last EUR/USD technical analysis by Yohay Elam

Key quotes

“Major economies in the old continent continue making gains against coronavirus, with Spain reporting no deaths from the disease on Sunday. Weekend figures tend to be optimistic, yet the downtrend is clear. Germany, France, and Italy also continue enjoying a downtrend.”

“Speculation is mounting ahead of the ECB's decision on Thursday. The Frankfurt-based institution may defy the German constitutional court's ruling – that deemed the bank's QE program as partly illegal – and expanding its bond-buying scheme. That would keep the government's borrowing costs low and support the recovery. Spreads between Italian and German bunds remain below 200 basis points.”

“Investors have been following the unfolding of protests in the US, following the murder George Floyd, an unarmed black person at the hands of the police. President Trump threatened to bring in the military and called governors ‘weak.’ Densely packed demonstrators may contribute to spreading coronavirus and delay the reopening, boosting the safe-haven dollar.”

“Fiscal stimulus may also boost equities and continue weighing on the greenback. According to reports by Fox News, Republicans and Democrats are accelerating talks for another stimulus package in response to the protests.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD: Bulls keep the reins with eyes on 0.7000 ahead of China CPI/PPI

AUD/USD portrays a fourth attempt to pierce the key 0.7000 threshold. Broad US dollar weakness, upbeat equities and commodities helped Aussie to ignore pandemic fears. China inflation data, Australian housing market figures and US Jobless Claims to decorate the calendar.

AUD/USD News

Gold: Will it be a smooth journey to the all time high?

The daily chart shows an acceleration away from the top of the flag pattern. The price has now broken out of the blue resistance line which was the previous consolidation high back in 2011 after the price dropped from the all-time high.

Gold News

USD/JPY: There is a big Fib confluence target on the downside at 106.90

USD/JPY has been dropping steadily throughout the session and broke the previous wave low of 107.24. This makes a new lower low lower high formation on the hourly chart after the previous wave low was a resolute support zone.

USD/JPY News

Look East for market direction

When the stock market of the world’s second largest economy jumps more than 450 points, or 8%, in a week, it is time to sit up and take notice. The Shanghai Composite index, which acts as the benchmark for Chinese stocks, is now at 2018 levels.

Read more

WTI on the move to fresh session highs, testing $41 the figure

We are now over 1% higher on the day despite the crude oil inventories in the United States swelling by 5.7 million barrels in the week to July 3, information that was provided by the Energy Information Administration. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures