Date: 20 Jul 2020

FOREX

The euro is recording gains versus all other major currencies, hitting a four-month high versus the US dollar as the European summit goes into extra-time. The leaders of the 27 countries, divided in two blocks with each defending opposing views over the size and shape of a proposed recovery fund, embarked on marathon talks on Friday to decide the future of the package. No agreement has been reached so far but the unusual extension of the discussions into Monday indicates a willingness by the two opposing camps to reach a consensus which, if grasped, could help create a more optimistic outlook for the euro and the Union itself.

Ricardo Evangelista – Senior Analyst, ActivTrades

source: ActivTrader


GOLD

Gold has started the week in green once again with the spot price holding resolutely above $1,800. This confirms investors’ huge interest for the yellow metal, while volatility remains low.

The price is less than $10 from the 9-year-peak reached last week at $1,818. A clear breakout above this level could open space for further rallies, while at this stage there are no correction signals as investors continue to buy gold to cover their portfolio against the risk of new falls on stock markets.

Carlo Alberto De Casa – Chief analyst, ActivTrades

Source: ActivTrader

 

EUROPEAN SHARES 
European indices had a mixed opening mixed on Monday, with the energy and financial sectors weighing on most benchmarks as traders brace for another busy week. While the direction of European stocks remains uncertain this week, market volatility is likely to be on the rise. Indeed, most investors are patiently monitoring the discussions between EU leaders about an additional €750 billion recovery package. Even if these renewed stimulus measures may not be fully priced in yet, market operators remain quite confident about it, making new highs possible for EU markets later this week. In addition, investors’ trading decisions will also be influenced by a new batch of corporate earnings this week with reports from Blackstone Group, Microsoft, UBS and Unilever looming. However, further downside pressure may also be felt on global stock markets this week as coronavirus cases continue to rise and the likelihood of renewed lockdowns in many areas remains a concern.

Pierre Veyret– Technical analyst, ActivTrades

 

Sounce: ActivTrader

 

The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication. All information has been prepared by ActivTrades PLC (“AT”). The information does not contain a record of AT’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.