News, Trends, & Analytics 05.08.2020

Today, the focus is on the US FAA’s decision on the Boeing 737 MAX, Argentina avoided a default, and on the expectation of economic stimulus.

 

Calendar

12:15 UTC

ADP’s July Nonfarm Employment Change Report will be released. A growth of 1.5 million is forecasted. In the case of a deviation upward, USD may start to grow.

Assets for trading: EUR/USD, USD/JPY, USD/CAD, USD/CHF.


14:00 UTC

The updated Purchasing Manager Index for the US non-manufacturing sector from ISM for July will come out. The indicator is expected to be 55 points. Exceeding the forecast may lead to an increase in USD.

Assets for trading: EUR/USD, USD/JPY, USD/CAD, USD/CHF.


14:30 UTC

US crude oil reserves will be reported. A reduction of 3.2 million barrels is expected. However, any increase in the indicator will have a negative impact on oil prices.

Assets for trading: Brent, Chevron, Exxon Mobil.

 

News

Economists polled by Bloomberg expect the Bank of England’s key rate to be cut to 0% in November. Affects GBP


The US Federal Aviation Agency has identified the issues that prevent the Boeing 737 MAX from resuming operations. Affects Boeing


Charles Evans, president of the Federal Reserve Bank of Chicago, called on the country’s Congress to take new support measures. Affects USD


Argentina has signed an agreement on the restructuring of public debt. Affects Gold


Disney’s quarterly financials disappointed traders. Affects Disney

 

Technical Analysis

Basic Dollar Index

Markets await the decision of the US Congress on a package of new economic stimuli. The delay has already caused the dollar’s recovery to stop. However, the media reported some progress in the negotiations.

The chart of the American currency index is trading within a descending channel. The asset is likely to show an upward trend in the near future.

CHF/JPY

A declining price maximum has formed on CHF/JPY, which can trigger a decline in quotes.

GBP/CAD

The pair has started an active downtrend, the target of which may be an upward support level.

GBP/CAD on this day in history

  • Since 2000, Aug 5th has been a trading day 13 times.
  • On 61% of those days, the asset finished trading with growth.
  • The maximum strengthening range was 1.2%.
  • The downward trend was limited to 2.03%.

Risk warning:

The information provided does not constitute a recommendation to carry out transactions. When using this information, you are solely responsible for your decisions and assume all risks associated with the financial result of such transactions.

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