Correlation between the euro and commodities | 08 May 2020

EURUSD trading plan:

A bullish rally in the commodity market will have a positive impact on the value of the European currency. Investors are increasing their long positions in gold and oil. Traders sought the safe-haven yellow metal after the U.S. said on Thursday that 3.169 million Americans claimed unemployment last week. The country now has an unemployment rate of 16% as more than 31 million people have lost their jobs since late March. Nascent signs of rebounding gasoline demand in the U.S. and a rapid curtailment of oil production that has seen U.S. producers cut over 1 million barrels per day of output in a matter of weeks.

Trading recommendation: Buy 1.0830 and take profit 1.0880.