EUR/USD Making a Recovery in the Daily Forex Market

• EUR/USD Price Continues to Improve on Market Open

• Traders Cashing in on Gold Gains

• Coronavirus Still Impacting Market Sentiment

 

The EUR/USD forex market has continued to improve slowly but surely over the last few trading sessions. As the European session opened today it still managed to cling onto the gains of the previous few days. This comes despite the worsening situation in Italy where the coronavirus outbreak is playing havoc with one of the largest economies in the EU. This latest news threatens to plunge the country back into a recession from which they only recently emerged.

US Dollar to Continue as Beneficiary

As markets in Europe await the release of German GDP data and consumer confidence data from the US later in the day, the Dollar stands in a unique position. With Europe and most of Asia consumed with health concern, the currency looks set to continue in its safe haven role. This has come to look even more certain with the rollercoaster that European traders endured through Monday trading.

Even though the American stock market has been in a turbulent mood, particularly yesterday, it is the currency that will continue to hold up as a safe option for traders looking to weather out the storm. The CB consumer confidence data to come today to come today will also go a long way to steadying the ship on Wall Street if it comes out more positive than expected.

Gold Prices Start to Consolidate

The USD was not the only market to see a boost from the ongoing situation. Gold has always been perhaps the number one safe-haven in times of market uncertainty. This was proven again in recent days with the price taking off to new highs. This has begun to consolidate today as traders have decided on taking some profits. This has seen the price retreat marginally from the seven year high reached on Monday.

The commodity still remains around the $1650 mark, though barring any catastrophic news from Europe in particular today, many analysts feel this is likely to see another slight decline to the nearby resistance levels. This too will depend a lot on the morning data from the US market as well as the final German GDP numbers to come.

Looking Ahead

In the current market and general economic climate, it seems that the only certain thing, is more uncertainty. Much will rely again on geopolitical factors more than economic data in what is a relative sparse week on the economic calendar. This could be a positive in the sense the forex market will have some space to contend with whatever news comes without much additional worry from economic data.

Besides data releases from German, Australia, and Canada to come throughout the week, a particular focal point given the current Eurozone issues may be Wednesdays address from the President of the ECB, Christine Lagarde.

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