Throughout the first day of the new week EURUSD remained consolidated at the levels of 1.0960/85. Today at 6 o'clock GMT we expect data on Industrial Production for the month of August in Germany, with expectations for a growth of 0.8% compared to the previous month, where we had a drop of -2.4%. The Eurogroup Meeting is another key event of the day that is likely to have an impact on currency markets. A little later in the day, however, the Bank of New Zealand is expected to cut interest rates more aggressively by 0.5% following the new trend of interest rate cuts around the world. From World-Signals.com, we expect a slight strengthening of the Euro, but it is very likely that the downward trend will continue towards the end of the week. Bet on a strategy to sell on slight bounces up to 1.1010+ with daily gains of 20-35 pips or short positions with bigger gains towards the end of the week.

Among the important fundamentals from Monday is Factory Orders for the month of August in Germany from 8am GMT. It is very likely that we will see another contraction that will negatively affect the Euro. In general, the industry in Germany has started to shrink and there are no chances for growth. The other important news is related to retail sales in the Eurozone at 11am GMT. Although we expect levels around zero or very little growth in retail sales. Among the world events that affect the currency markets are the escalation of the conflict in the Middle East, where mainly the Euro may suffer due to disrupted supplies of both goods and fuels. Overall, the Dollar will be in a stronger position this week and we at World-Signals.com expect the Dollar to strengthen against the Euro. In the last week, the Dollar has taken about 200 pips on the Euro. In retrospect, the Dollar had 3 losing weeks, and only in the last one did it regain some of the lost positions. Use the 1.1010 levels to open short positions with a 6-8 business day closing target.

As we have written many times, the price of gold will have only one direction - up. Today, as we write this article, the price of gold is exactly $2,500 per ounce. The massive printing of dollars during the Biden period led to inflation not seen in decades. Although gold is catching up some of the inflation, it still has a lot of catching up to do. And when you add the combination that the dollar is not surrounded by anything at the moment, and even the military power of the United States is in doubt, gold is the only real asset (along with other metals and food). If we add the huge uncertainty in the world, both military and in anticipation of the next big pandemic, then all the free capital in the world goes to gold. The price of gold is $2,500 today, and it's a holiday month, with the beginning of September, and if they really succeed in putting the new pandemic into action, then the limit to $3,000 can be reached very quickly. This time, we at World-Signals.com predict that there will be no exchange of gold for fresh capital to cover costs in a crisis.

A collapse of the British Pound is inevitable in the coming weeks. The situation in Great Britain is very unstable, many businesses are closing temporarily, but the situation with the protests and turning society against each other will have a negative impact on the economy in the medium term. It is quite possible that the escalation of tensions after the killing of the three girls, as well as the serious wounding of more people, will continue to grow. We expect the Pound to reach October 2023 levels with GBPUSD levels at 1.20, at a current rate of 1.2710.

Growth in crude oil production in the United States further pushed crude prices lower. In addition, the tendency for the price of oil to become cheaper is from the last one or two months, when it became clear that OPEC+ will not continue with the reduced production. All this has been happening since the beginning of July 2024, a trend that will most likely continue until November. Why until November? The goal of the ruling Democrats in the United States is to keep the price of fuel low so that the electorate can choose the next candidate for president again from the ranks of the Democratic Party. But we are unlikely to see prices lower than $60-$63.

Another twist in the politics of the United States. After the assassination attempt on President Donald Trump, after Biden withdrew from the race for a second term. Today they finally managed to convince Biden to step down. This will definitely have an impact on the currency markets. The weak and endlessly disoriented president remains in history. And who will replace Biden in the fight against Donald Trump? The choice most likely falls between the three candidates Hillary Clinton, Michelle Obama or Kamala Harris. Most likely, the choice of the Democratic Party will be a woman.