Stock markets are moving away from multi-month highs
tyle=”text-align:center;”>Stock markets are moving away from multi-month highs after the IMF lowered growth forecast for the world economy with a 3.5% to 3.3%, citing the impact of tariffs. Meanwhile, between the US and the EU starts its own trading exchange. The Americans started to defend Boeing, threatening to impose higher tariffs because of the state subsidies to Airbus. Potentially a new source of trade tension is able to swell in the fire, though at the moment, it is not comparable with the trade disputes between China and the United States.
The pair was up to 1.1280 yesterday, but has retreated to the end of the day to 1.1260, poised before the important news from the ECB and the fed. The results of the meeting on monetary policy and the subsequent press conference Draghi often cause a surge of volatility on the EURUSD. Potentially, the protocols of the fed can also influence the rate of the key currency pairs. The focus of the resistance at 1.13, through which passes the upper border of the descending channel. Important support is at 1.12. Going beyond these levels can generate a powerful surge of stop orders and to influence the trend of subsequent days.
Harsh statements by European politicians not actually lead to higher risks of a disorderly exit of Britain from the European Union. It is expected that EU legislators will allow the United Kingdom to re-deferral, and will also give you the option to automatically get them on, without the need to convene extra summits every two weeks. The British pound, meanwhile, stuck close to 1.3050 with the important support level at 1.30. A dip below may reflect the breaking of the uptrend that has been ongoing since December last year.
Oil prices came under mild pressure after rising to $71 per barrel. Noteworthy is the fact that Brent quickly gained support, gently turning to growth after a decline to $70.52. A further important area, which is likely to push the price is $69.40: through which passes a 200-day moving average. It is also worth to note that the RSI comes out of overbought, which often is regarded as a signal for further correction.
Alexander Kuptsikevich, An Analyst