Stocks mixed as coronavirus cases rise in US
The euro rose sharply today as traders reacted to the improving business sentiment in the eurozone and talks on the EU recovery fund. Data released by the European Commission showed that consumer confidence came in at -14.7 for June. Services sentiment was -35.6 from the previous -43.6 while industrial sentiment saw a -21.7 reading versus the previous -27.5. Meanwhile, Angela Merkel and Emmanuel Macron met to deliberate on the $840 billion recovery fund. These are the first face-to-face talks between the leaders of the biggest economies in the European Union.
The price of crude oil rebounded after falling sharply in the Asian session. The price is relatively volatile because traders are still reflecting on the surging coronavirus cases and their impact on demand. In the United States, cases rose by more than 43,000 leading to many states to cancel their reopening plans. For example, California has urged bar owners to shut down operations in some counties. Also, states like Texas and Arkansas have urged their residents to remain at home. At the same time, traders are reacting to the decision by Chesapeake Energy to file for bankruptcy.
The British pound declined as the fifth round of Brexit talks started in Brussels. According to Bloomberg, the negotiators have started being hopeful that they can reach a deal. Still, there is still a long way to go considering that the two sides have significant differences on key issues like fisheries and goods trade. In addition, traders are reacting to mortgage data released by the Bank of England. The data showed that mortgage approvals declined to just 9.27k in May from the previous 15.85k. Mortgage lending increased to £1.2 billion from the previous £0.01 billion. Net lending to individuals declined by more than £3.4 billion.
The EUR/USD pair rose to an intraday high of 1.1292 from the previous low of 1.1195. On the four-hour chart, the price is along the 100-day exponential moving averages and above the 50-day EMA. The RSI has also moved from a low of 38 to the current 58. The pair is also forming a broad triangle pattern, which is not near the tip. As such, the pair may continue rising to test the upper side of the triangle at 1.1317.
The XBR/USD pair rose to an intraday high of 41.10, which is the highest it has been since Friday last week. On the four-hour chart, the price is along the 25-day exponential moving averages. It is also above the ascending trendline shown in white. The RSI has continued to rise and is now at 50. The price may continue rising as bulls attempt to test the previous resistance at 41.85. On the other hand, a move below today’s low of 39.94 may see the price continue to fall.
The XAG/USD pair rose to an intraday high of 17.96, which is the highest it has been since Thursday last week. On the four-hour chart, the price is slightly above the 100-day and 50-day exponential moving averages. It is also on an upward trend as shown with the white trendline. This means that the pair may continue rising as bulls attempt to test the important resistance at 18.18.