This morning, the EURUSD pair was noted at the maximum value from the middle of this month - 1.1214. This reaction is due to the defeat of the populist and far-right parties in the past elections to the European Parliament, contrary to forecasts. According to the results of the elections, 80 percent of the seats in Bruxelles is left to the pro-European parties, which will support the single European currency.
However, it is worth noting that in countries where the ruling governments pursue a rather conservative policy, the right-wing parties were the winners. For example, in the UK, which also participated in the elections, the Brexit party led by Nigel Farage took the advantage. This is unlikely to be good news for the British pound, despite the already sort of developed, albeit weak, ‘immunity’ on Brexit theme.
Right-wing parties also won in Italy, Hungary, and Poland. In France, the National Union party, led by Marine Le Pen, overtook the party of President Emmanuel Macron, widely advertised by the media.
In Greece, the first place was taken by the conservative New Democracy party, which forced Prime Minister Alexis Tsipras to immediately declare early parliamentary elections in the country.
In Portugal and Spain center-left parties, which are currently in power, won the elections and this could also be a disturbing signal for the euro.
In the United States, as in the UK, today is the weekend. Thus mainly the outside influence is possible to the USD, in the case of any new statements by China, in light of the trade war with Washington.
The British pound, in addition to the results of the elections to the European Parliament, can be influenced by statements from their results by influential politicians, especially those fighting for the vacant chair of the Prime Minister of the Kingdom.
Forex trading recommendations:
EURUSD: Buy. Entry point – 1, 1202. Take Profit – 1, 1220. Stop Loss – 1, 1171.
GBPCHF: Sell. Entry point – 1, 2770. Take Profit – 1, 2753. Stop Loss – 1, 2799.
NZDUSD: Sell. Entry point – 0, 6554. Take Profit – 0, 6542. Stop Loss – 0, 6575.
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