Trading on key Forex news: we are expecting the publication of important macro statistics from China, the US, Australia, Germany, Canada, the Eurozone, as well as the results of the meetings of the central banks of Australia, Canada, and the Eurozone.
Last Wednesday, the European Commission presented a draft fund in the amount of 750 billion euros to provide loans and grants to countries in the region. The EU leaders will meet on June 19 to discuss this proposal. This helps mitigate the bearish risks for the euro in the short term, and also lays a stronger foundation for a more sustainable recovery in the future, economists say.
Last week, the EUR/USD pair reached its highest level in almost two months amid the optimism regarding the resumption of economic activity in the Eurozone and the recovery plan proposed by the European Commission. Nevertheless, some experts warn that negotiations between the EU leaders are likely to be difficult and a compromise may invalidate their outcome.
Economists expect the ECB to increase PEPP volume by at least 500 billion euros at the regular meeting on June 4. This will confirm the ECB’s promise to do everything necessary to help restore the Eurozone and will have a positive effect on the euro.
Global stock indices also continued to grow last week, despite another increase in trade and political tensions in relations between the United States and China.
At the same time, the demand for defensive assets such as gold and yen is maintained at a high level.
Next week will be full of important events. Nevertheless, the attention of most investors will be focused on the publication on Thursday of the ECB decision on the rates and QE program, as well as data from the US labor market on Friday.