Hard currencies tremble in the world, nothing seems certain anymore. For now investors are seeking safe havens in alternatives like Gold and Bitcoin. In this post we will see the keys to the Forex market for next week, I will also give you some useful tips to protect your money.
The week closed with slight gains for the greenback, especially against the Euro, closing below 1.12. Against the British Pound it also appreciated, trading at the close of Friday at 1.2350.
Regarding Gold, the dollar was close to its annual minimum of US $ 1,749, recorded back there on May 19. Be on the lookout for whether or not you can break the key $ 1,750 barrier on Monday.
Forex Market: 5 key points
Next week will be packed with high-impact macro data, which will move the currency market hard. Below I will summarize the 5 points that I consider key to monitor.
- The day Monday The key data will be existing home sales in the US, which are forecast at 4.15 million, from 4.33 million last month. Although it may pass as a “light” data, it is very important in the current context of the world.
- The Tuesday It will be loaded with high-impact macro data in Europe, the most prominent being Germany’s manufacturing PMI, where an expansion of up to 41.5 points is expected. Then, late in the eastern evening, New Zealand will spread its interest rate, which is forecast to be unchanged at 0.25%.
- Entering the half of the week, Crude inventories will be released in the United States. Any major variation can significantly move the price of a barrel of oil (WTI).
- The Thursday will be known in the US weekly requests for unemployment benefits, more than sensitive data for the current context that the power of the world is going through.
- For end the week, the data on consumer sentiment in the US will be revised, it is expected to be positive up to 79.1 points.
Where to keep money?
It is one of the questions that must be asked daily in the current context in which we live. If the world economic context was already ugly, with the Coronavirus pandemic it is really “disastrous”.
Investors go public and traditional assets, especially those that require bank intervention.
What if there is a Coronavirus outbreak? We’d be really screwed up, if we weren’t anymore.
However, there are some financial instruments that continue to show solidity in this context, and have also done so in other crises in the past. Here are the 3 highlights:
1- Gold: The precious metal closed Friday at $ 1,743, just $ 6 from its annual high. If the pandemic progresses, you should have no problem reaching $ 2,000.
2- Yen: The Japanese currency is the quintessential safe-haven currency, and in this crisis it will be no exception. At the time of writing, it is trading at 106.80, with its target value being the barrier of 100, as long as the crisis continues to deepen.
3- Bitcoin: BTC is one of the unconventional financial instruments with the most potential, despite its short existence. Although it is a new technology, in its 11 years of life it has proven to be a clear refuge, with an exponential increase in its value. Another of its advantages is that it is not linked to the banking system.
The information in this content has been extracted from reliable sources detailed below:
1- Own writing of the author of the content.
2- External source: Forex Factory.