Forex and Cryptocurrency Forecast for August 03 – 07, 2020

First, a review of last week’s events: – EUR/USD . The U.S. economy is not just in recession. It’s flying down at a breakneck speed. The decline in US GDP in the second quarter was the largest ever recorded – minus 32.9%. The reasons for this fall are well known – these are quarantine measures caused by the coronavirus pandemic. The authorities hope they can stop the spread of COVID-19 without turning the economy to zero. Some states have managed to tighten quarantines without restricting economic activity and to achieve a smoothing of the incidence curve. However, there are hopes and there is a reality – the same minus 32.9%, which plunged investors into a real shock, causing a simultaneous fall in both the US dollar and stock indices. While these two indicators were going in antiphase in spring – the USD index (DXY) grew, when the Nasdaq and the S&P500 fell, and vice versa, now they all fell. In contrast to the United States, things in Europe turned out to be not so bad, as evide