InvestMacro

By The Gold Report

Source: The Critical Investor for Streetwise Reports   12/11/2019

The Critical Investor sits down with Avrupa Minerals CEO Paul Kuhn to discuss plans for the company’s Alvalade project in Portugal in light of the recent earn-in agreement with Mubadala Investment Company and Trafigura.

As Avrupa Minerals Ltd. (AVU:TSX.V; AVPMF:OTC; 8AM:FSE) finalized the Definitive Agreement with MATSA, a 50:50 joint venture company of Mubadala Investment Company, a pioneering global investor, and Trafigura, one of the world’s leading independent commodity trading and logistics houses, on November 20, 2019, exploration programs are being prepared now. As exciting times are ahead in 2020 for Avrupa after a quiet period, it is time to speak to CEO Paul Kuhn and hear all about why Avrupa is a potentially very interesting investment opportunity at these lows, although the MATSA JV is obviously sparking new interest in the story recently:

Share price; 3 year timeframe (Source Tmxmoney.com)

The Critical Investor: Hi, Paul, thanks for taking the time to do this interview. Let’s have a look at some basics first. Will Avrupa concentrate on Alvalade, or will it be looking for other projects as well?

Paul Kuhn: You are most welcome, and I’m happy to give an update. Obviously we continue to concentrate on Alvalade, as we have done for years in the recent past. Besides this, we are also thinking about re-stocking and moving on to new possibilities, especially gold. There is a lot of potential in the Pyrite Belt of Portugal, mostly copper and zinc of course, but I think the market is also looking for us to generate gold prospects/possibilities, as gold is recovering nicely. This is our basic business: to generate new programs, upgrade them, then either JV or progress ourselves, depending on the geological and mineralogical merits.

TCI: Let’s continue with some financials here. MATSA is paying Avrupa C$580k upon signing the DA and will pay C$145k for operating exploration programs in the first year; why is Avrupa raising more cash at the moment?

PK: Avrupa needs a bit of cash, to the tune of C$250k, to allow us to operate at the corporate level until the funds from MATSA can be transferred. The wording in the JV deal states that the C$580K will be supplied by MATSA upon issuance of the new Alvalade Experimental Exploitation License (EEL) by the Portuguese mining bureau (DGEG). We expect this issuance to occur late in Q1 2020. Until then, we need some funding to pay operating costs and costs associated with reviewing and possibly acquiring new projects.

CEO Paul Kuhn signing the MATSA JV agreement with representatives from Mubadala and Trafigura

TCI: At the Mines & Money conference in London we recently discussed this Exploitation License coming up for Alvalade, potentially in March 2020. Why do you think it could be granted by then?

PK: According to the Mining Laws in Portugal, there are two 45-day periods devoted to due diligence to be performed by the government concerning the license itself, and then concerning the areas covered by the license. The first 45 day period started at early November, there will be holidays and the government usually takes some time before it starts the second period. Once due diligence is completed, the government and Avrupa’s Portuguese subsidiary, MAEPA, Lda., will finalize the actual contract, and then the license can be issued. Probably the fastest, most efficient timing will have the license issued by the beginning of March in my view. Both MAEPA and MATSA will continue to lobby the DGEG and the Secretary of State’s office to issue this important license as quickly as possible.

TCI: Does the JV with MATSA contain a deadline for this EEL license?

PK: The license, when issued, provides for a three year-program with a two-year extension for a total of five years. We will try to get both the 51% earn-in and the 85% earn-in completed in those five years. They work fast and expediently, as demonstrated by their Magdalena discovery and subsequent production commencement in less than three years. Keep in mind that this is a 40 million ton (Mt) mine.

TCI: Is the drill program unchanged since our last update, when it was estimated at 4,000m?

PK: We have 1.2 million euros to work with in the first year. MATSA wants to do airborne geophysics and drilling. I expect more than 4,000 meters in the first year.

TCI: Is there a map available with targets for this program if available and to be disclosed, and a geological motivation for these targets? What are you planning to find out?

PK: These questions do come a bit too early. We have provided general maps in the past, in news releases and on the website. I expect that further planning will provide more information after the New Year.

TCI: Will there be an IP survey and/or MALM surveying in order to define targets?

PK: The new JV allows for a Technical Committee to oversee the project. Sometime after the New Year, we will meet to go over all available information to plan the program going forward. Geophysics will be more used in this program, I suspect, than in the past. MATSA has had excellent previous success utilizing geophysics for exploration purposes in the Pyrite Belt of Spain. This should not be too different in Portugal.

TCI: In London, we talked about MATSA also staking claims in Portugal close to the Lousal/Sesmarias claims. Will this be put into a different JV with Avrupa?

PK: MATSA has made three applications in southern Portugal. One is, indeed, located adjacent to the Alvalade Project. I think that there are some possible synergies with MATSA concerning their interests in the Pyrite Belt of Portugal, particularly close to the Alvalade Project.

TCI: When will drilling start on Alvalade (how soon after the EEL is granted), and how soon after this approximately will we see results being announced you think?

PK: Because there is some time allotted to us before the EEL is granted, we should have all of the necessary planning and preparation completed and ready to go before issuance. This is something I intend to work on after New Year’s. We will, of course, announce the start-up of the drilling, and results will come after we review and sample the core. Hopefully this will be exciting news to report. But I think that we will have other possible newsworthy events in 2020. This could involve new projects, possible JVs elsewhere in the Pyrite Belt and/or Kosovo. There are a number of agendas and projects that we are considering. Getting a bit of funding, as noted earlier, will help in bridging the time gap to issuance of the Alvalade license.

TCI: Do you know anything about the tonnage targets MATSA has, if you can disclose?

PK: No, but I am sure they are looking for something in the order of their Magdalena discovery, 25–40 million tonnes of 1% copper or better. As you know, our 10 Lense could already be estimated to contain around 19–20 Mt at that average grade, so we believe the potential is there. Of course we would like to discover another Neves Corvo (190 Mt) or Aljustrel, our two models in the Portuguese Pyrite Belt.

TCI: What is their primary focus for target? How about Lousal, which still has a historical resource, if I’m correct?

PK: First up is our Sesmarias discovery. It is located only 6–7 km from Lousal, and may actually be part of the same system divided by a major fault zone. There is already at least one massive sulfide lens there, and could certainly have more. We have really only explored 700–800 meters of a 2,000-meter strike length of known mineralization. There are indications of extension to the north, as well, beyond the 2,000-meter mark.

We have bypassed Lousal in the past, but with this JV we intend to review the historical work and put together a plan of exploration to determine what is actually left in the old mine. Based on historical production records, we think that there could be 30–35 million tonnes of sulfide material remaining in the old mine. After Lousal, just 2 km to the north, is our Monte da Bela Vista stockwork zone discovery. It’s all part of the same system, and could turn into a real district.

TCI: Do you know when MATSA will be satisfied enough to increase the JV to C$10 million as was a longstanding goal of yours?

PK: Continuation, as you might expect, will be determined by success, and this in turn can only be labeled as such by MATSA itself; they must see the potential as described earlier, or better. If, at the end of the first year, the results are good, then MATSA must decide to continue and then spend another 1.2 million euros over years two and three to get to the 51% level. Having said that, if things go really good, I would expect an accelerated work and funding schedule. There is a lot to do at Sesmarias, then Lousal, then MdBV. We have another 20–30 targets on the license, as well. If all continues to go well, we are fully carried to a production decision for MATSA to earn-in to 85%. That could very well amount to 30–40 million euros (=C$45–60 million) of NPV value for Avrupa.

TCI: As there is still the minority Slivovo interest in the background, could you explain the status of this at the moment?

PK: Our 10% interest has finally been diluted to a 2% NSR royalty. Our partner, Byrnecut International Ltd., is currently evaluating possibilities on how to move forward. They are working with the mining bureau of Kosovo (ICMM) on how to extend the life of the license to allow more exploration and resource delineation time. We are looking into the possiblity of further exploration in Kosovo, as it is still very much under-explored. We have another exploration license in the country and an application into the government for two attractive areas of national interest that have been under withdrawn status since we started work in Kosovo. We have lobbied strongly for access to these areas over the years, but they remain closed unfortunately. There are other areas of interest in the country, and we maintain a strong, proprietary database covering the country. Lots to do there, and we are looking for proper funding support from the interested exploration community.

TCI: We are coming to an end of this interview; do you have anything else of interest to mention for potential investors?

PK: We are looking to acquire attractive prospects in both Portugal and Kosovo, our main areas of exploration in Europe these days. There are a number of good possibilities in both. However, I am also scouring the continent for new gold ideas. Gold regained its popular status since the summer, and we think that a good gold prospect could help with investor awareness of our programs. I have several possibilities in mind. Notwithstanding this, my full focus is on getting the new, upgraded Alvalade license. This basically means to keep focused on the DGEG to get the license issued as soon as possible. Once we have accomplished that, I think Avrupa will be “off to the races.”

TCI: Thank you very much, Paul, for your cooperation as always, and I believe Avrupa Minerals is setting up to be much more than a binary greenfield exploration JV, and MATSA is aware of this. As both you and me are significant shareholders, our interests are very much aligned, I’d say, and I’m looking forward to positive developments next year.

I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter on my website, http://www.criticalinvestor.eu, and follow me on Seekingalpha.com, in order to get an email notice of my new articles soon after they are published.

The Critical Investor is a newsletter and comprehensive junior mining platform, providing analysis, blog and newsfeed and all sorts of information about junior mining. The editor is an avid and critical junior mining stock investor from The Netherlands, with an MSc background in construction/project management. Number cruncher at project economics, looking for high quality companies, mostly growth/turnaround/catalyst-driven to avoid too much dependence/influence of long-term commodity pricing/market sentiments, and often looking for long-term deep value. Getting burned in the past himself at junior mining investments by following overly positive sources that more often than not avoided to mention (hidden) risks or critical flaws, The Critical Investor learned his lesson well, and goes a few steps further ever since, providing a fresh, more in-depth, and critical vision on things, hence the name.

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The author is not a registered investment advisor, and currently has a long position in this stock. Avrupa Minerals is a sponsoring company. All facts are to be checked by the reader. For more information go to www.avrupaminerals.com and read the company’s profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

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Charts and graphics provided by the author.

( Companies Mentioned: AVU:TSX.V; AVPMF:OTC; 8AM:FSE,
)

By Orbex

Equity markets broke fresh ground on Thursday. Reports indicate that Washington is ready to cut the existing tariffs by half on over $360 billion goods.

There is also speculation that the US will cancel the new tariffs due to kick in from December 15^th. The news comes just when doubts began to rise on whether both parties would reach a deal before the December 15^th deadline.

Euro Trades Weak After ECB Inaction

The euro gave back the gains on Thursday. The ECB held its monetary policy meeting under the guidance of newly appointed Christine Lagarde.

The ECB held interest rates steady and did not make any major changes to its forward guidance.

EURUSD Retreats Off Resistance

The euro hit the resistance price level of the 1.1131 region. Failure to post a convincing breakout above this level saw prices retreating. With resistance established at this level, we expect the common currency to decline in the near term.

The first support level at 1.1100 remains key. A breakdown below this level will signal further losses that could push the euro down to the 1.1072 level.

Crude Oil Prices Hold Steady

Oil prices have held onto the gains from earlier in the week. The weekly inventory report out on Wednesday gave a brief boost.

Commercial stockpiles rose only 800,000 comparing to the expectations of a draw. Combined with the production cuts announced at the recent OPEC meetings and trade optimism, oil prices are maintaining the bullish momentum.

WTI Crude Oil Could Rise Further

WTI crude oil is trading within the rising price channel. This indicates further gains are likely to come. The next upside resistance is at 60.80. But ahead of the gains to this level, we expect to see some pullback. The lower support area at 57.87 – 57.64 could be tested in the short term. As long as this support holds, the upside bias remains.

Investors Shun Gold as Risk Sentiment Rises

Gold prices were down by over 0.4% on the day. The declines came largely because of trade deal optimism.

Gold prices have been caught trading within the range over the past month. While prices got a boost from the dovish Fed outlook, the gains were reversed quickly.

XAUUSD Likely to Maintain the Sideways Range

The precious metal is expected to continue trading flat. The established range of 1483 – 1462 remains for the moment. Unless gold breaks off from this range, we do not expect prices to head anywhere.

The bias remains to the downside, for now. This will especially come if the US and China reach a conclusive trade agreement.

By Orbex

By Orbex

Dollar Crashes

The US dollar has been heavily lower over Friday morning on the back of the announcement that the US and China have signed the phase one trade deal. With an initial trade deal in place, the next round of US tariffs due on Sunday has now been canceled. The sense of relief is palpable today, with equities having soared to fresh highs and USD lower amidst safe-haven outflows. USD index trades 96.42 last.

EUR Higher on ECB Optimism

EURUSD has been sharply higher today on the back of the weakness seen in USD. In her first monetary policy meeting as ECB chief yesterday, Lagarde struck a slightly more optimistic tone.

She noted that while there are still downside risks to the eurozone economy, these risks have reduced slightly recently. EURUSD trades 1.1177 last, heading back towards 1.1217 resistance.

Conservatives Gain Power

GBPUSD has been sharply lower today. Despite the Conservative party win being seen as a positive for GBP in the medium term, it seems that the initial reaction is one of “sell the fact”.

Focus will now shift to when the parliamentary vote will be held on the PM’s Brexit deal. If the deal is agreed upon, GBP is likely to resume upside. GBPUSD is currently retesting the 1.3376 level from above.

SPX500 Hits New Highs

Risk assets have been firmly higher today. News of the US-China trade deal being signed has seen the SPX500 exploding to fresh, all-time highs, trading 3182.78 last.

With a deal now in place, and with further US tariffs avoided, the market is now hopeful that the two sides can begin to work on delivering a fuller deal to end the 2-year long trade war which has ravaged the global economy.

JPY Down, Gold Higher

Safe havens have been a little mixed tody. While JPY has been heavily lower against USD as a result of the sharp move higher in equities, gold has been a little higher against the dollar a result of the heavy weakness in USD.

XAUUSD trades 1470.59 last, continuing to recover against the post-FOMC crash. USDJPY trades 109.68 last, just below the recent 109.73 highs.

Crude Climbs on Trade Deal

Oil prices have been firmly higher today deriving strong support from news of the trade deal. The prospect of an end to the trade war, greatly improves the outlook or oil demand, keeping price well bid here despite the EIA reporting a further crude oil inventories rise this year.

Crude trades 59.79 last, close to challenging the 60 level which marks the top of the recent range in oil.

Loonie Heads Lower

USDCAD has been sharply lower today as a result of the weakness in USD and the rally in crude. The improved outlook for crude should help keep CAD supported in the near term and traders will be keen to see how the BOC receives news of the trade deal. USDCAD trades 1.3154 last, sitting just above the 1.3145 level for now.

Aussie Fails At Resistance

AUDUSD has been a little lower today, though most likely as a result of technical selling as the pair tested the .6931 October highs. The news of the trade deal should help support the Aussie in the near term, improving commodity prices and the trade outlook between Australia and China.

By Orbex

By IFCMarkets

Lower carryover estimates bullish for WHEAT

Lower wheat carryover estimates are bullish for wheat. Will the WHEAT rise?

Latest World Agriculture Supply and Demand Estimates (WASDE) report released by USDA on Tuesday cut wheat import estimates by 15 million bushels and raised exports by 25 million bushels. At the same time it lowered the carry over projection for wheat by 40 million bushels. These are all bullish developments for wheat. However recent reports projected increased wheat production in Europe and Russia, both major global producers. These are downside risk for wheat price. In Europe, a 14.3% increase compared to last year soft wheat harvest is projected, according to Coceral grain lobby. At the same time USDA forecast 0.7% increase for Russian wheat production in 2019/2, totaling 2.737 billion bushels. USDA projects also increased exports from Russia.

On the daily timeframe the WHEAT: D1 is retracing after hitting 5-month high in the end of November.

• The Parabolic indicator gives a sell signal.
• The Donchian channel indicates no trend yet.
• The MACD indicator gives a bullish signal: it is above the signal line and the gap is widening.
• The RSI oscillator is flat above the 50 level.

We believe the bullish momentum will continue after the price breaches above the upper boundary of Donchian channel at 542.8. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the lower Donchian boundary at 516. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (516) without reaching the order (542.8), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Technical Analysis Summary

Market Analysis provided by IFCMarkets

By Orbex

Recessions are inevitable. It’s not a matter of if there will be a recession, it’s a matter of when.

The longer we go without one, the more likely the next recession is just around the corner. A savvy forex trader will want to get ahead of the circumstance and be ready for when it happens. They’ll also already know how to deal with it.

The problem with recessions, though, is that they are nearly impossible to predict. After all, if we could predict them, then everyone would trade so as to avoid a recession, and then they wouldn’t happen.

So, we have to be constantly on the lookout for potential signs of where and when a recession might happen. That way, we can figure out what to do.

They’re All the Same, but Different

Economic growth cycles follow a pattern.

There is about a 7-9 year growth cycle, followed by a short contraction of maybe six months to at most a couple of years (barring unwise fiscal and monetary policy). The contraction period often has the same cause, but it presents itself differently each time.

For example, in the 2008 financial crisis, there was an excess of mortgage-backed securities (MBS), to oversimplify the situation to a comic degree. The prior financial crisis in 2001 followed the tech bubble, where there was too much investment in tech stocks.

From a very simplified and practical perspective, recessions happen as a consequence of excess inventory in something. This leads to a correction that has a domino effect throughout the economy.

Chaos is a Ladder

When the recession starts, few people know the cause. Some think they do, but they don’t, which leads to worse investment decisions.

There is no sure-fire way to deal with economic chaos. However, there is an order to the madness that follows a bursting bubble. And, from that, we can get some potential trading guidelines.

As the recession sets in, investors get frightened and very risk-averse. This is bad for stocks, especially the more speculative ones.

On the other hand, risk aversion leads to people holding more liquid assets and tends to support currencies. While many invest in gold, safe-haven currencies are also just as likely to jump. A recession is not exactly a bad time to be a forex trader.

Nerves of Steel

Recessions drive out speculators as it becomes increasingly hard to make a quick buck since major investors move out of riskier assets and try to maintain liquidity.

This is also when people who manage to have liquidity come in to seize underpriced assets, such as commodities, stocks, and bonds.

Despite lower liquidity, volatility tends to increase. Keeping an eye on the VIX would help when trading forex during a recession. Risk and money management are increasingly important as margins become shorter. This allows you to stay in shape to take advantage of the also inevitable recovery.

Even after the “Great Recession” of 2008, the market recovered its losses in less than two years. Many traders were able to get in on the bottom thanks to keeping their risk profiles in line with the circumstances.

The bottom line is that recessions offer a lot of opportunities because people didn’t manage their risk ahead of time. Liquidity, the ability to buy underpriced assets, is the key to trading forex in a recession.

By Orbex

By George Prior

Boris Johnson faces an uphill battle to recover more than three and a half years of lost business investment and confidence, warns the CEO of one of the world’s largest independent financial advisory organizations.

The warning from Nigel Green, founder and chief executive of deVere Group, comes after Mr Johnson’s Conservative party secured an emphatic win with a pledge to ‘get Brexit done’ in the UK’s general election.

Investors welcomed the news. The markets jumped and the pound experienced its biggest rally in almost three years.

Mr Green says: “With a clear majority in the House of Commons, the grinding parliamentary Brexit deadlock that has had a stranglehold over the UK will finally come to an end.

“There is now a clear mandate for Britain to leave the EU with Mr Johnson’s deal on January 31.

“The lifting of some of the crippling uncertainty has been welcomed by the markets, the pound and business.”

He continues: “However, now that Mr Johnson has this ‘powerful mandate’, he must use the momentum and immediately begin to recover the more than three and a half lost years of business investment and confidence that the Brexit saga created.

“The Prime Minister and his new government need to do two things as a matter of urgency.

“First, they must set out firm and unequivocal assurances around a no-deal Brexit for the end of 2020. After the passing of the Withdrawal Agreement, they have a tight, 11-month deadline to secure a deal. As such, the UK could still leave the EU without a deal if trade negotiations are not concluded in a timely and successful manner.

“Another cliff-edge of no-deal Brexit would serve as another hammer blow for investment and economic growth.

“Second, Mr Johnson’s administration must actively seek to implement pro-business policies sooner rather than later to stoke enterprise and investment.”

Mr Green goes on to add: “Brexit has cost Britain many tens of billions of pounds. Brexit has inflicted reputational damage on the UK on a monumental scale, which has created unprecedented uncertainty and impacted economic and social progress.

“Now that haemorrhaging of opportunity and money must end.”

The deVere CEO concludes: “The parliamentary paralysis might have ended but the Brexit process hasn’t.  Now the hard work begins.

“For Boris Johnson to maintain the election bounce, he must act quickly and decisively to keep uncertainty at bay. There is much at stake.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

After forming a continuation pattern around 1.1111 and breaking 1.1153, EURUSD has almost reached the short-term upside target at 1.1098. Possibly, today the pair may consolidate around 1.1180 and expand this range both upwards and downwards, 1.1200 and 1.1155 respectively. If later the price breaks this range to the upside, the market may resume moving upwards with the key target at 1.1236 if to the downside – start a new correction to reach 1.1111.

GBPUSD, “Great Britain Pound vs US Dollar”

After rebounding from 1.3050 and breaking 1.3225, GBPUSD has almost reached the short-term target of the third ascending wave at 1.3488. Today, the pair may consolidate around this level. If later the price breaks this range to the downside at 1.3420, the market may start a new correction to reach 1.3333; if to the upside at 1.3511 – expand the range towards 1.3539 and then resume moving downwards with the target at 1.3200.

USDCHF, “US Dollar vs Swiss Franc”

After reaching the downside target at 0.9808, USDCHF has formed the ascending impulse towards 0.9870; right now, it is consolidating around 0.9845. Possibly, today the pair may expand this range both downwards and upwards, 0.9820 and 0.9880 respectively. If later the price breaks this range to the upside, the market may start another correction with the target at 0.9916; if to the downside – form a new descending structure to reach 0.9777.

USDJPY, “US Dollar vs Japanese Yen”

USDJPY has broken 109.00; right now, it is still growing towards 109.77. Today, the pair may reach 109.70 and then start a new correction towards 109.40, at least. After that, the instrument may form one more ascending structure to reach to 109.77.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD has reached the short-term upside target at 0.6916; right now, it is consolidating at the top. Possibly, the pair may fall to reach 0.6878 (at least) and then resume moving upwards with the key upside target at 0.6962.

USDRUB, “US Dollar vs Russian Ruble”

USDRUB has reached the short-term downside target at 62.75. Possibly, today the pair may consolidate near the lows. If later the price breaks this range to the downside at 62.60, the market may continue trading inside the downtrend towards 62.22; if to the upside at 62.80 – start a new correction with the target at 63.25 and then resume trading inside the downtrend.

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is moving downwards with the target at 1.3140. Today, the pair may reach 1.3147 and then form one more ascending structure towards 1.3200. Later, the market may resume moving downwards to reach the above-mentioned target.

XAUUSD, “Gold vs US Dollar”

Gold has completed the ascending wave at 1486.60 along with the descending impulse at 1468.60; right now, it is consolidating around the latter level. The main scenario implies that the price may form a new descending structure towards 1458.20 and then resume moving upwards to return to 1468.60. Later, the market may start another decline with the target at 1444.00.

BRENT

Brent has finished the ascending impulse at 65.15; right now, it is correcting downwards to reach 64.30. After that, the market may start a new growth with the short-term target at 65.90.

BTCUSD, “Bitcoin vs US Dollar”

BTCUSD is without any particular direction. According to the main scenario, the price is expected to fall towards 7000.00 and then resume moving upwards with the target at 7600.00.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

By George Prior

Expect the British pound to soar above predictions to $1.40, billions of pent up business investment to be unleashed to boost the UK economy, and the FTSE 100 to open stronger before paring back, as Boris Johnson’s Conservatives secure an impressive majority in the UK general election.

But there are many serious challenges ahead, warned the CEO of one of the world’s largest independent financial advisory organizations.

Nigel Green, chief executive and founder of deVere Group, comments: “The pound has enjoyed its biggest surge in a decade on the hopes that a solid Conservative majority can finally end the Brexit deadlock.

“Many traders were caught off guard by the size of the majority and this may push the pound even higher than previous predictions. We could see bullish traders now take it to $1.38 or maybe even as high as $1.40.”

He continues: “With more political certainty due to the large majority, the UK economy is also likely to receive an election bounce.

“Billions of pounds in business investment that has been on the sidelines due to the parliamentary paralysis is now ready to be unleashed. This will give a much-needed boost the slowing British economy.”

He goes on to add: “The UK’s FTSE 100 will open higher on Friday morning. However, this is likely to be a positive knee-jerk reaction, with some gains likely to be given up throughout the day as most FTSE companies earn in dollars and the pound is stronger.”

The deVere CEO also offers a cautionary caveat: “It now looks more likely that Boris Johnson will indeed be able to ‘get Brexit done.’

“His party’s large majority in the Commons helps him pass his Brexit deal and it gives him more political sway when negotiating the UK’s future relationship with the EU and reducing the risk of no-deal at the end of 2020.

“However, there’s still a long way to go. Mr Johnson’s self-imposed end of December 2020 deadline is a mammoth challenge, and a no-deal Brexit is still possible on January 1 2021.

He adds: “The result election also puts a question mark over Scotland’s future in the United Kingdom. The SNP’s gains will embolden them in their key aim of securing Scottish independence.

“Mr Johnson’s monumental task to deliver Brexit with a deal and the Scotland issue will continue to fuel uncertainty in 2020.”

Mr Green concludes: “Boris Johnson’s election gamble has paid off.  Christmas has come early for the pound, the British economy and UK financial assets.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement

Article By RoboForex.com

BTCUSD, “Bitcoin vs US Dollar”

As we can see in the daily chart, BTCUSD is trading at 61.8% fibo; this movement may be described as a short-term correction. After completing it, the pair may resume falling towards the target at 76.0% (5700.00). At the same time, there is a convergence on MACD, which may indicate a more significant correction after the price reaches the target. The key mid-term downside target is the low at 3121.90. The resistance is 50.0% fibo at 8490.00.

The H4 chart shows more detailed structure of the current local correction. By now, the pair has managed to reach 23.6% fibo; at the moment, the price is trading close to this level. The next rising impulse may later continue towards 38.2% and 50.0% fibo at 8050.00 and 8526.50 respectively. If the price breaks the local support at 6525.00, the correction will be over.

ETHUSD, “Ethereum vs. US Dollar”

As we can see in the daily chart, the downtrend has reached 76.0% fibo; right now, ETHUSD is correcting. The resistance is 61.8% fibo at 189.00. After completing this short-term pullback, the instrument may continue falling towards the post-correctional extension area between 138.2 and 161.8% fibo at 134.50 and 123.70 respectively.

The H4 chart shows more detailed structure of the current correction, which has already reached 38.2% fibo. Right now, the price is trading towards the low at 132.02. However, in the future the instrument may yet resume growing to reach 50.0% fibo at 165.47.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

By IFCMarkets

Falling German wholesale prices bearish for EURUSD

German wholesale price index decline accelerated in November after 2.3% drop over year in October. Will the EURUSD fall?

The price chart on 1-hour timeframe shows EURUSD: H1 is trading sideways. The price is rising above the 200-period moving average MA(200) which is rising. And the RSI oscillator is rising above 50 level but has not reached the overbought zone. There is no trend yet formed, traders have to decide when it would be a best time to enter the market.

Market Analysis provided by IFCMarkets