18.07 - will the markets let us trade at all today?
- by Anna K.
Oh, what a horrible couple of days this is! Trading seems to be almost impossible due to the volatility of all the assets. And I am not kidding when I am saying that it seems easier to forget about trading for some time than to make our peace with the turbulence. But, we have traded through worse, so today is not supposed to be such a big hassle for us.
Why am I so pessimistic? Well, yesterday’s performance of EUR/USD was horribly scary to us due to the unstable behavior of the greenback and we mistakenly thought that that was the limit for the turbulence and instability of the couple. But we didn’t know what was waiting for us today. And today we see that EUR/USD saw recovery even though there was no magic comeback and the couple is still pretty unstable.
So, what happened? Well, G7 summit happened. And even though right now we are only waiting for loud statements and international business to commence, Trump has already done his part. For the third time in the last couple of month American President stated that he fears the European countries are meddling into the markets and manipulating their currency’s exchange rate. This statement birthed the fears that Trump is preparing to manipulate his own economy and his own national currency in the scopes of the currency market. Of course traders were more than disappointed to hear something like that and dollar was sent plunging down from the high point he was trying to climb yesterday. That gave the necessary boost for EUR/USD although we are not sure for how long are we going to be see euro fight the greenback.
Today is the second day of G7 summit and as we all know political gathering like that always tend to bring changes to the markets.