Correlation between the European currency and gold | 27 Agosto 2021
27 Agosto 2021, EUR/USD
EURUSD trading plan:
The uptrend in the precious metals market will have a positive impact on the value of the European currency, since assets are correlated with each other. Gold prices rose above the key psychological level of $1,800 on Friday, supported by safe-haven demand and a dip in the dollar ahead of a speech by the U.S. central bank chief that will be scanned for cues on stimulus tapering. Gold is viewed as a hedge against inflation and currency debasement. Investors are now waiting for U.S. Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole, Wyoming, and symposium at 14:00 GMT for any hints about when the Fed will begin tapering its asset purchasing programme.
Investment idea: buy 1.1740 and take profit 1.1800.
The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
