Today’s focus is on Germany’s new stimulus, concerns around an increase in COVID-19 infections, and the reopening of shops
News
Germany’s second supplementary budget in three months includes stimulus measures worth 103 billion euros ($115.98 billion). Affects EUR
European shares tumbled on Monday as fears of a second wave of coronavirus infections grew with Beijing and Washington reporting new cases. Affects DAX
Germany has signaled it will push a tougher EU line towards China, with stronger demand for, “reciprocity,” thought to be “access to EU companies.” Affects EUR
A new outbreak at a food store in Beijing, has lead to a new round of testing in the capital. Affects Gold
Shoppers in England returned to stores on Monday for the first time since March. Affects GBP
Calendar
4:30 GMT
The Bank of Japan Monetary Policy Statement containing the outcome of the BoJ’s interest rate decision on asset purchases and commentary about the economic conditions that influenced their decision. Affects JPY
6:00 GMT
The British Average Earnings Index, that measures the change in the price businesses and the government pay for labor, including bonuses will be released. The expected result is 1.4%, but if the data is higher then the GBP may receive a boost.
12:30 GMT
Measuring the change in the total value of sales at the retail level, the U.S. Retail Sales report will be issued. With an expected gain of 8.0%, a lower report may result in a bearish trend for the USD.
Technical Analysis
DAX
As Germany prepares to take the helm of the EU, while slowly opening the country back up amid a new increase in virus cases in China and the U.S., and with an additional 103 billion euros ($115.98 billion), this index will see some movement.
Looking at its chart, we see the “Three White Knights” formation, which signals a likely uptrend.
Copper
This metal’s chart has recently tested its upward support level and will continue its overall uptrend.
EUR/USD
This pair’s chart has tested its upward support level and shown the “Three Outside Up” figure, suggesting a continued trend higher.
