Correlation with “high-yield” assets | 01 июля 2019

01 июля 2019, GBP/USD

Correlation with “high-yield” assets

GBPUSD trading plan:

Positive negotiations U.S. President Donald Trump and Chinese President Xi Jinping they form a high demand for risky assets this week. This is a positive signal for the British currency which has a correlation with “high-yield” assets. The yield of two-year U.S. government bonds is 0.61% lower than the Federal Reserve rate. Investors are expected a decline in FOMC interest rates on July 31 and September 18. This is a negative signal for the U.S. currency. We are expecting an increase in the value of BRENT to the level of 66.15, which will have a positive impact on the value of the British currency. OPEC+ pushes for cuts till the year end that could heighten the rally in oil.

Trading recommendation: Buy 1.2686 and take profit 1.2733.

David Johnson
Analyst of «FreshForex» company
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