April 20th, Euro narrows gap with pound by raising EUR/GBP

On Monday, April 19, trading in the euro ended with an increase of 0.46% to 1.2036. The US dollar fell to a six-week low against other major currencies, while the yield on US Treasuries rose to 1.61% per annum.

There was no news behind the dollar collapse. Risk appetite grew out of the blue. The locomotive for the foreign exchange market was the British, which strengthened against the dollar by 183 points from 1.3810 to 1.3993. It could have strengthened due to the lifting of restrictions in the UK (April 12), as well as the approved trade deal with the EU (April 15). Brussels hopes she will help strengthen the relationship.

Scheduled statistics (GMT +3):

• 23:30 there will be a report on weekly crude oil reserves from the American Petroleum Institute (API).

Current situation:

At the auctions in Asia, the euro rose to 1.2074. At the time of writing, the euro is worth 1.2080. Since the fundamental reasons for the decline in the dollar index are unknown, it is not possible to predict how active buyers will be today. The growth leaders are Australian and New Zealander. The Australian dollar rose after the publication of the minutes of the RBA monetary policy meeting.

The pound resumed its upward movement after the release of excellent stadan. The UK Office for National Statistics showed that the country's official unemployment rate fell to 4.9% in February from the previous 5.0%.

At the hourly timeframe, the price forms tops along the line U2 (deviation from SMA 55 by 0.62%). There is a reserve for strengthening the euro, but the price formation signals an impending downward correction. The EUR / GBP cross is increasing, so 4 and 5 tops can form with the support of the crosses.

It would be nice to unload to 1.2019 (45 degrees) amid rising 10-year bond yields, which climbed to 1.63%. Gold trades for US US bonds. As they began to fall in price, the price fell from 1790 to 1765. If the yield continues to rise, then the major currencies will also have to retreat.

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