Global markets started the week with moderate optimism due to the positive news-flow in connection with the re-opening of the economy, increased consumer mobility and the abolition of, or in connection with the caps on the fuel consumption. News about the step return from Europe, and some U.S. States to their normal economic rhythm of something to neutralize the gloomy reports from the economic front.
The spurt in the risk assets was also supported by oil prices, robust growth, prompting optimistic adjustments, or inflation expectations, the key gauge of an economic recovery. Relatively expensive crude oil, in comparison to the last period of low prices for the commodity have to be currencies, the leadership in the G10 group, although your bull is growing momentum fragile, because of the risk of oil and a downside correction. The demand for risk assets, it is now also limited by high risk of re-escalation in the trade spat between the United States and China because he is, or He is trying to scapegoat. The size of the long-term economic damage of locks have companies remains unclear, however, for risk assets, this risk is likely to be negative. About the foreign exchange market, the limited space for the risk-on moves that are meant to be the solid Foundation for a stronger USD, with the DXY likely to remain above the 100 mark.
The European currency continues to hover around 1.08-brand on Monday. The easing or the health limitations in one of the epicenters of the Covid-19 the outbreak in Europe, in Italy, shows that the locks have for Europe, it is largely a past issue. The markets focus on the consumer expenditure data, to understand whether there are changes in the behavior of consumers, and what was the impact of the social measures, the distancing to you. EUR / USD is likely to continue to week vary in the range of 1.08-1.09-for-all-this -.
For the lbs, support at 1.20 looks fragile, thanks to a series of comments by the UK Central Bank officials, the light on the future of British monetary policy. The chief economist of the Bank’s Haldane hinted in an interview that a negative interest rate could be added to the reserves of the commercial banks at the Central Bank), the bank’s tools, in addition to the recent comments of the head of the Couch, Bailey showed an increase in the probability, or QE, as it seems, in June. The current pound-assessment can also. not quite the risk of Brexit negotiating record collapse, similar to the breakdown of the trade deal between the US and China The goal is for the couple a test, or the 1.19 mark.
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