Positive news | 18 Juni 2019

EURUSD trading plan:

Investors are expected the interest rate of the Federal Reserve to decrease in the summer. The yield of two-year U.S. Government bonds is 1.86%. This figure is 0.5% less than the Federal Reserve rate. This is a negative signal for the U.S. currency. Low interest rates force investors to sell U.S. assets. We are seeing capital inflows into emerging market assets. This is a good signal for the Euro! Investors are buying gold today. This is positive for the Euro as there is a correlation between the Euro and gold. Investors are perceived the precious metal as an alternative to the U.S. dollar.

Trading recommendation: Buy 1.1230 and take profit 1.1266.