{"id":172017,"date":"2020-06-11T15:22:07","date_gmt":"2020-06-11T19:22:07","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=172017"},"modified":"2020-06-11T15:22:07","modified_gmt":"2020-06-11T19:22:07","slug":"markets-in-turmoil-or-healthy-pause","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/06\/markets-in-turmoil-or-healthy-pause\/","title":{"rendered":"\u2018Markets in Turmoil\u2019 or healthy pause?"},"content":{"rendered":"
June 11, 2020<\/div>
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By Lukman Otunuga, Research Analyst, ForexTime<\/a><\/strong><\/p>\n

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The sobering message from the Fed last night, trampling all over the stock market\u2019s V-shaped recovery playbook, has punctured risk appetite today with concerns over a second wave of virus infections in the US bringing traders back to reality with a bump.<\/p>\n

Although the FOMC noted that the health crisis posed \u201cconsiderable risks\u201d to the economic outlook, it reiterated its willingness to add more stimulus if needed, including strengthening forward guidance. This continued dovish stance is risk-supportive on its own and should bode well for an extension of the risk rally.<\/p>\n

But Covid-19 is rearing its head once more with cases in America that re-opened earlier starting to surge again. This has obliterated the Fed impact and markets are firmly on the defensive with the JPY and CHF leading the majors in a clear boost to havens.<\/p>\n

King Dollar is relishing the risk-off swing as corrective pressures slow and we may see a period of consolidation for markets now as investors digest the latest developments.<\/p>\n

The weekly US initial jobless claims came in lower again, but this is now the twelfth straight week in which claims have topped one million. Continuing claims, which provide a clearer picture of how many Americans remain unemployed also printed higher than estimates.<\/p>\n

GBP\/USD trading around key level<\/strong><\/p>\n

The market continues to await tangible Brexit news after the EU\u2019s refusal to change Chief Negotiator Barnier\u2019s mandate. There has also reportedly been a rejection of a UK plan for secret intensive negotiations through July.<\/p>\n

Prices spiked to 1.2815 post the Fed last night and into Fibonacci resistance, but we are now in another correction phase with intraday support at 1.2617. If we lose this level, a long-awaited broader pullback could be on the cards, although the bulls would prefer to see a consolidation phase after a first decline in eleven sessions. The 200d MA at 1.2689 could be a pivot point for direction.<\/p>\n

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EUR\/USD ascent continues<\/strong><\/p>\n

Traders are maintaining their optimism over an EU aid package to solve all the region\u2019s ills, but an agreement is unlikely to be reached before the EU leader\u2019s summit on June 19.<\/p>\n

EUR\/USD is struggling to extend beyond the 1.14 region with bearish divergence in momentum warning of a broader consolidation phase \u2013 not surprising when its streak in overbought territory has been the longest since 2010. Solid support remains down to the mid-1.12s.<\/p>\n

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Commodity spotlight: Gold<\/strong><\/p>\n

Gold continues to build on its recent gains, advancing every day this week. After falling to the bottom of its two-month range, bullion cheerleaders have their eyes firmly fixed on this year\u2019s high at $1765. A strong weekly close may see those cheerleaders break out with multi-year highs from 2012 at $1796 a likely target.<\/p>\n

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Disclaimer: <\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n<\/div>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Lukman Otunuga, Research Analyst, ForexTime The sobering message from the Fed last night, trampling all over the stock market\u2019s V-shaped recovery playbook, has punctured risk appetite today with concerns over a second wave of virus infections in the US bringing traders back to reality with a bump. Although the FOMC noted that the health […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-172017","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/172017","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=172017"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/172017\/revisions"}],"predecessor-version":[{"id":172027,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/172017\/revisions\/172027"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=172017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=172017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=172017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}