Correlation of Euro and gold | 31 أغسطس 2020

EURUSD trading plan:

A bullish rally in the gold market will have a positive impact on the value of the European currency. The precious metal took off again on Friday as Fed Chairman Jay Powell laid out a new policy of targeting average but higher inflation to better manage U.S. economic and employment recovery in the future. Speaking at the virtual Jackson Hole symposium U.S. Federal Reserve Chairman Jerome Powell said that the Fed would target an average inflation rate of 2%, countering years of super-low inflation. The Federal Reserve keeping rates lower for longer and showing greater tolerance for higher inflation is a key ingredient in the current de-basing the U.S. dollar.

Trading recommendation: Buy 1.1878 and take profit 1.1929.