FOREX
Early Tuesday trading is marked by the agreement reached in Brussels, by the leaders of the 27 countries, for a recovery fund. A hard bout of negotiations concluded with the union agreeing that it will borrow money collectively with the aim of redistributing it between the member states in the form of grants and loans, albeit in a slightly diluted form due to the pressure from the so-called ‘frugal four’ countries.
This is seen as a moment of historic importance, without which the future of the single currency and of the union itself could have been at stake. Over the last few days the euro gained ground to other major currencies amid the increasing likelihood of a deal being reached. For this reason, the single currency is flat in relation to the dollar in the aftermath of the summit, as the outcome had already been priced in by the markets.
EURUSD chart
Ricardo Evangelista – Senior Analyst, ActivTrades
GOLD
Gold has broken a new record, with the spot price jumping above $1,820. We can say that this is due to the weakening of the greenback or from the significant deal reached by the EU, but the reality is quite simple: there are many more buyers than sellers.
Despite stock markets once again in green, investors are looking for a parachute in case of future stock market collapses and are buying gold as insurance. Technically after the price broke through the resistance level of $1,818, there is space for further recoveries, with the trend remaining very positive.
Carlo Alberto De Casa – Chief analyst, ActivTrades
