The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
Goldman Sachs has bullish prospects on pound
Information is not investment advice
Goldman Sachs advised investors to go long on the pound vs the euro. How far may EUR/GBP drop? Let’s find out!
The EU and the UK are planning to reach the Brexit deal in the coming weeks. Wall Street analysts anticipate that both sides will make an agreement as soon as early November, that’s why the British pound is likely to gain since it is really sensitive to Brexit developments. The President of the EU Commission Ursula von der Leyen and UK Prime Minister Boris Johnson have agreed on this weekend to continue talks over main sticking points like fisheries and aid issues. Once the market knows the outcome, the further pound’s further traction will be defined. Overall expectations are more positive, which is beneficial for the GBP. Among pound bulls are Goldman Sachs, Wall Street, and JP Morgan, but, for example, Nomura doesn’t rush nor to buy the pound, neither to sell it, waiting for more clarity in EU-UK negotiations.
EUR/GBP has entered the descending channel, proving the possibility of further pound’s strength. The pair has almost reached the upper trendline, that’s why there’s no more room for the pair to keep rallying up. Therefore, if it reverses from the high of July 27 at 0.9120 and starts falling, it may meet the support at the 200-period moving average of 0.9065. The move below it will drive the pair to Friday’s low of 0.9045. Resistance levels are 0.9120 and 0.9150. Keep an eye on further Brexit news, if you trade the pound!
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
The US Federal Reserve may refrain from more aggressive interest rate hikes in March due to geopolitical risks after Russia's special operation in Ukraine…
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
The US dollar index has all chances of reaching the 2000s high of 120.00.
Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?