Daily Outlook

FxPro monthly market overview

Let’s discuss the most important market movements of June and outline what to look out for over the coming month.

Event of the month
During June, the pandemic was gaining momentum in South America and India. In the early days of the month, there were riots in the US, with a lack of social distancing. At the end of the month, the number of daily COVID-19 cases in the United States updated its April’s records, which halted planned lifting of restrictions. WHO (World Health Organisation) believes that the worst is yet to come.
What to look out for: Policymakers now are not in a hurry to re-implement strict social distance orders. This has a positive impact on the economy, helping the business and consumer sectors to recover from lockdown measures. However, an uncontrolled second-wave of contagion may provoke new economic restrictions.
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Having started the month near 1.1100, the euro jumped swiftly to 1.1400. However, during the following three weeks, the pair followed the downward trend, ending June at 1.1230.
What to look out for: There is a fierce tug of war taking place on EURUSD between bulls and bears. The battle for potentially important levels of 1.1400 and 1.1000 can attract increased attention from traders.
In June, Gold rose 3.0% to $1,779, updating 8-year highs near the level of $1,785. This upward trend has been in place for the 3 consecutive months. (Since April)
What to look out for: Investors’ interest in Gold is growing based on the signs of business recovery and normalization of liquidity in the financial system. Buyers see it as one of the instruments that can help protect against potential inflation.
The price of the American WTI increased by 12% in June, rising to the same levels that oil had held before the OPEC+ deal was broken in March. However, price growth stalled after the first reports of production growth in the U.S. and new record volumes of commercial reserves.
What to look out for: Prices in July will be influenced by both reports on the recovery of energy demand and the attitude to risk assets on the part of investors. It is also worth watching the dynamics of production and consumption in the US. Strong changes in these indicators can strengthen or reverse the June oil trend.
The S&P500 experienced a surge in volatility from the 10th to 15th June, with a 10%-wide trading range, but despite this, the S&P500 index price by the end of June had changed by only 1%.
What to look out for: Over the last week of the month, the pressure on stocks increased. Therefore, medium-term traders may now focus on the 50-day and 200-day Simple Moving Averages (SMAs). Their breakthrough will be regarded by many investors as a significant confirmation of the downward trend.
Add this to the calendar
In the Economic Calendar on the FxPro trading platforms and website, pay attention to the publication of the following data:
2
July
USD
U.S. Nonfarm payrolls
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16
July
EUR
ECB Monetary Policy Decision
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29
July
USD
Fed Monetary Policy Decision
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30
July
USD
US GDP Advance Estimate for 2nd quarter 2020
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These news releases are often accompanied by increased volatility.
Trading CFDs carries a high level of risk
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