October 30, 2019

Overview of the foreign exchange market (30.10.2019)

What do we see in the foreign exchange market?

The dollar is trying to get out of the short-term downward channel. The fed intends to reduce interest rates, which will put at risk the us dollar quotes against the main basket of currencies.

Demand for dollars in world markets is growing. Reduction of quotations is perceived by many as an opportunity to buy at a discount.

This idea can be worked out with a Bang against the Russian ruble, but you should be careful in pairs against European currencies. Against the Japanese side, the mood is strictly upward.

The ECB still can not make the European currency cheaper. Plans for quantitative easing of monetary policy are being implemented gradually, by the way, soon the markets may react to the change of the ECB Chairman. Mario Draghi is going to retire.

Technically, the chart of the European currency looks tempting in terms of purchases. The price managed to get out of the medium-term downtrend, broke through the resistance level and at the moment after the reverse test of the level, but as a support, rushed up.

The overall market mood is upward, despite the ECB's plans.

Brexit again moved...However, some agreements between the UK and the EU have been reached.

Brexit, apparently, will no longer be tough and uncompromising, which gives a medium-term, positive impact on the exchange rates of both sides, as well as on stock markets in General.

British technical pattern is inspiring. The currently weak downward correction, after a lot of growth within existing weeks.

It makes sense to look for entry points in the North direction. The General mood of the market is upward.