Correlation of British currency and oil | 25 August 2020

25 August 2020, GBP/USD

Correlation of British currency and oil

GBPUSD trading plan:

The US Federal Reserve has released fresh data on changes in its balance sheet. The Federal Reserve's assets increased by $ 54 billion over the past week, while a week earlier the growth rate was only $ 9 billion. The Federal Reserve continues to actively buy Treasury and mortgage bonds in order to “soften” lending conditions in the United States. This is a negative factor for the dollar. A bullish rally in the oil market will provide additional support for the British currency. In the Gulf of Mexico, about 60% of oil production is stopped due to two hurricanes approaching the coast of Louisiana and Texas. This factor will lead to another decrease in oil reserves in American storage facilities and have a positive effect on the quotes of black gold.

Trading recommendation: Buy 1.3065 and take profit 1.3125.

David Johnson
Analyst of «FreshForex» company
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