Global markets are trying to develop global growth

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Global markets develop growth. Futures on the S&P500 exceeded 2900 and is just 1.2% below the historical highs of late September last year. China A50 has also reached levels 14 months old, and then subjected to pressure in the light of profit. The General trend of markets on the rise are optimistic expectations for a trade deal the U.S. and China, as well as the dates shift Brexit and improved data Chinese statistics, which were published last week.
EURUSD
According to analysts at FxPro, economic indicators from China helped the single currency to a new portion of the support at 1.1200. From the technical analysis, the Euro enjoys several positive signals which set up on a further rate rise. First, this increased shopping on the lines decline to 1.1200. Second, the increase above 1.1300 allows to speak about the break of the downtrend resistance since the beginning of the year. Third, the pair is trading since the beginning of the week above the 50-day moving average, also increases the buy from the participants who closely monitor medium-term trends.
GBPUSD
The British currency is growing cautious after the European lawmakers allowed Britain to remain in the EU until the end of October with the possibility of further delays. The news took some of the risk of committing indiscriminate Brexit, reducing pressure on the GBP. The development of equity markets supported the purchase, lifting EURUSD to 1.3100. As in the case of EURUSD, the pair is trading near the 50-day mA, a break above which may provide some increase in purchases.
Brent crude stuck at around $71 per barrel, losing momentum to growth. It is alarming that in the context of growing optimism in the markets Brent ceased to develop the offensive. In addition, data on the number of drilling rigs operating in the United States again noted a reduction that usually is a factor of support of quotations – but not this time. It seems that the growth momentum has been completely depleted. Important technical momentum indicator, the RSI fell below 70, after returning from the overbought zone. This is often followed by increased pressure on the tool, so the drop in oil prices in the short term – the most likely scenario.
Bitcoin Bitcoin begins the week with gains of approximately 2.5% to $5180, receiving support after a brief dip below $5000. The market is “settled,” and now may be ready for the next sudden movements. Careful of buying after a decline to $5000 Harbor hopes for a return to positive trends. Among the important levels which can lead to an increase in volatility is worth paying attention to $5200 (MA200) and the previous highs at $5417.
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Alexander Kuptsikevich,
Analyst
FxPro