News, Trends, & Analytics 19.05.2020

Today, the focus is on the difficult second quarter for Germany, investments in Boeing, as well as the main stabilization indicator from Jerome Powell.

 

News

The Saudi sovereign fund invests $714 million in Boeing shares. Affects Boeing


The head of the U.S. Federal Reserve Jerome Powell called medical performance the most important for the economy. Affects USD


The Bundesbank monthly report predicts a decline in the German economy in the second quarter, despite the lifting of restrictions. Affects EUR


The U.K. Secretary of State for International Trade, Elizabeth Truss, said that discussions on a trade deal with the U.S. will proceed at an accelerated pace. Affects Brent


Credit Suisse analysts predict a further strengthening of oil. Affects Brent

 

Calendar

09:00 GMT

The index of Economic Sentiment in Germany will be published. The forecast is 32 points. If the real data is lower, the EUR will come under pressure.


12:30 GMT

There will be a report on the number of issued building permits in the United States. Experts predict a value of 1 million. If the data is higher, USD may rise.


14:00 GMT

Fed Chairman Jerome Powell will deliver a speech. This event can cause an increase in asset volatility.

 

Technical Analysis

Basic dollar index

Recent statements by Fed Chairman Jerome Powell on the economic situation in the country have shown that the situation with COVID-19 will be decisive. If there is no second wave of the epidemic, then the economy will recover. And while there is no hint of a negative scenario, the US dollar is losing its position as a safe-haven currency.

The American currency index could not break the psychological threshold of 100 points. Presumably, we are expecting a cycle of decline in USD.

Brent

Fibonacci levels allow the scenario for the growth of Brent oil quotes to 40.38.

AUD/CHF

The graph of the asset formed a figure continuing the “flag” trend. In case of a breakdown of its upper boundary, it is recommended to adhere to the upward direction in transactions.

 

AUD/CHF on this day in history

  • Since 2000, May 19th has been a trading day 13 times.
  • On 53% of those days, the asset finished trading with growth.
  • The maximum strengthening range was 0.76%.
  • The downward trend was limited to 1.74%.

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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