17.06.2019: EUR rally in question (EUR, USD, GBP, CHF, GOLD)

Presently, traders are focusing their full attention on the monetary policy of the World’s Central banks. There is a low chance that the Fed will cut its key rate on Wednesday. However, some experts think that Jerome Powell might surprise the market. The US currency is attempting to retain its high marks reached on Friday. The upcoming meeting of the regulator puts pressure on the greenback. Market participants have anticipated interest
rate reduction this year. Thus, they are more curious to learn when
the policy easing will begin. Therefore, all attention will be drawn to
Powell’s speech. The US dollar’s rate depends on how dovish
the Fed Chairman’s rhetoric will be. The EUR/USD pair went into a correction phase. Despite the weakness of the European currency,
quotes may recover slightly during the day. In the European session, the euro/dollar pair
was trading at 1.1215 near Friday’s close. However, the downtrend also looks quite likely. Today ECB Board member Benoit Kerr said that
the regulator may consider an interest rate reduction as the best option in the current
situation for the euro area and for the global economy. The turbulent geopolitical situation hammers
the US dollar’s quotes while the yen, the Swiss franc, and gold are profiting. On Monday, the precious metal is trading at
the level of $1338 per ounce. Additionally, its growth is supported by the
upcoming Fed’s meeting and high chances of policy easing later this year. At the beginning of the week, the USD/CHF
pair does not show a clear direction. Although the potential growth of the Swiss
currency is highly likely. The pound sterling is pressurized by the UK
domestic policy. Boris Johnson proclaims that one way or another
the country will leave the European Union this fall. Traders of the pound sterling are discouraged
but they don’t give up. The GBP/USD pair is trading with a slight
increase at 1.2592. No volatility is expected before the results
of the final round of voting. The results of the Bank of England’s meeting
are of little interest to traders as the regulator is unlikely to change its key rate due to
political uncertainty in the country. However, talks may continue as they support
the pound sterling rate.

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