After a week full of central bank meetings and announcements, the question might be, so what has really changed?
It appears that we will continue to be in a low interest rate environment for the foreseeable future… at least until inflation rises above and stays above 2 percent in the U.S. The coronavirus infection rate is on the rise again in parts of Europe as lockdown measures begin in some countries.
The U.K. government is attempting to re-write its Brexit divorce terms and the E.U. curiously this week is not ruling out an agreement being reached by the end of the month.
A long was taken in the EURGBP today during the early part of the U.S. session overlap, risking 10 pips for a potential 65 pips to our daily target at .9197. Price moved higher but was unable to get above .9159 – an important resistance level on the hourly chart today, in advance of the U.K close.
Equity markets are moving lower today and in the U.S. the S&P 500 is probing its September low, which if closed below will be bearish.
Good luck with your trading, stay healthy and enjoy your weekend!
