On Monday the 29th of June, trading on the euro closed up. The EURUSD pair rose by 0.22% to reach 1.1241. Trading on the US stock market closed up. The indices got a boost from the news that the US Federal Aviation Administration has started Boeing 737 MAX recertification test flights. This led to a surge of more than 7% on Boeing shares.
Later in the day, US data was released. The number of home sales in the US in May rose by a record 44.3%, which was much higher than the forecasted 15%. Despite the continued spread of COVID-19 in several US states, investors once again refocused their attention on economic recovery.
Day’s news (GMT+3):
The EURUSD pair traded above the balance line at 1.1240 for several hours. S&P 500 futures rose to 3,059 points before news that Victoria state in Australia has ordered a new 4-week lockdown following a spike in coronavirus cases. This lockdown will affect 10 districts in Melbourne. Australia has managed the pandemic relatively well and has only now made it into the spotlight. This news sent the yen up, while the EURUSD pair dropped to 1.1204.
At the time of writing, the euro is trading at 1.1210. The drop came to an end at the trend line drawn from the 1.1169 low (22 June). Coronavirus news is centre stage once again, and any bad news will wipe out the gains made by the bulls.
Jerome Powell’s speech could increase market volatility today as he will testify before the House Financial Services Committee at 19:30 EET. He will talk about an economic recovery bill in the wake of the COVID-19 pandemic.
There are currently a few signals that the downwards movement is set to continue, followed by a bounce. The technicals point towards a bounce from the trend line to 1.1275.