Coronavirus News, British Pound (GBP) and FTSE 100 Prices and Analysis:
- Boris Johnson may shift from phase one to phase two.
- Economic calendar is full of potential market moving releases.
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Boris Johnson has said that the UK is beginning to turn the tide against the deadly coronavirus and that there are ‘real signs now that we are passing through the peak’. While the PM is pleased with the progress being made towards meeting his five tests, any move into phase two of the government’s strategy would be gradual as he stressed the country is still facing a moment of ‘maximum risk’. Sterling-pairs and the FTSE 100 held onto opening gains in relatively calm trading conditions.
The economic calendar is packed full of risk events this week – there is also a heavy schedule of US earnings releases – and these need to be monitored closely with fresh April data appearing. Along with Euro-Zone and US Q1 GDP numbers, both expected to be negative, the latest interest rate decision and commentary from the FOMC and the ECB.
EUR/GBP has given back nearly all of last week’s gains and is back the 61.8% Fibonacci level at 0.8747. A series of short-term lower highs underlines the pair’s weakness and support between 0.8678 and 0.8707 may be tested soon. Resistance at 0.8865 may prove difficult to break this week.
EUR/GBP Daily Price Chart (October 2019 – April 27, 2020)
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