Traders will be focused on the Brexit message, Iran’s lack of interest in the dialogue, and low inflation in the EU.
British Prime Minister Boris Johnson will meet French and German leaders for Brexit talks at G7 summit. Affects the GBP
Iran’s Foreign Minister Mohammad Javad Zarif said the country is not interested in talks with Washington. Affects gold
Saudi oil facilities were attacked by drones. Affects Brent
Estonian central bank governor Madis Muller said US inflation is far from their target of 2%. Affects the EUR
Japan’s exports have been declining for the eighth month in a row. Affects Nikkei 225
The EU released a report on inflation yesterday. Its level was 1%. Against this background, the Governor of the Central Bank of Estonia, Madis Muller, said the economy might need additional incentives. Traders may take it as a hint at a rate cut.
Meanwhile, traders may also play the uptrend, as Friday’s afternoon candlestick “Pin bar” is a strong reversal pattern.
The pair may continue the trend up until it reaches 68.00, which is the upper limit of the channel.
The chart may get under pressure at 26400, which is a horizontal technical level.
EUR/USD on this day in history
- Since 2000 August 20th has been a trading day 14 times.
- On 43% of those days, the asset ended with growth.
- The maximum reinforcement range was 1.11%.
- The trend down was limited to 0.8%.