New highs in EURUSD: the sky is the limit. Overview for 31.07.2020

2020-07-31 19:02    RoboForex

EURUSD has been trading upwards since June 25th; the asset continues forming a stable uptrend.

After a short pause, the major currency pair continues rising and has already updated its closest highs. The current quote for the instrument is 1.1893.

The USD has been stabbed twice and each time was more surprising than the other. And if the statistics could have been predicted one way or another, Donald Trump – certainly not.  

So, the latest data showed that the US GDP lost 32.9% q/q in the second quarter, which is the worst reading since the Great depression time. The major part of this decline was in April when the tertiary industry was completely shut down. Starting from May, the sector started reviving slowly but the rising impulse was too weak but the activity is still restricted due to an increasing number of new COVID-19 cases in the USA. 

This problem will continue keeping market players on the edge in their expectations relating to the GDP in the third quarter. 

It goes without saying that the indicator might have lost much more if it hadn’t been for the stimulus package of $3 trillion but the current plunge is still very impressive. 

The second negative factor came from US President Donald Trump, who, referring to the plummeted GDP, poor economic situation, and the COVID-19 pandemic, said that he didn’t exclude the [possibility of postponing the presidential elections scheduled for November.  It was an unpleasant surprise for the “greenback” enthusiasts because any political uncertainty raises risks, which are already too high. 

EUR

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