News, Trends, & Analytics 26.05.2020

Today, the focus is on the reduction of the German GDP, the abolition of the state of emergency in Japan, as well as new sanctions against Chinese companies.

 

News

The Iranian oil minister, Bijan Namdar Zangeneh, described the current demand for oil as “very vague.” Affects Brent


German GDP in the first quarter of 2020 decreased by 2.2%. Affects EUR


Japanese authorities ended the State of Emergency regime throughout the country. Affects JPY


The U.S. Department of Commerce has imposed sanctions on a number of Chinese companies involved in human rights abuses. Affects Gold


Brazil came in second in the number of cases of COVID-19. Affects ETF MSCI Brazil

 

Calendar

14:00 GMT

The U.S. Consumer Confidence Index from The Conference Board will be released. The forecast is 88 points. If the real data is lower, the USD will come under pressure.


21:00 GMT

The speech of the head of the Bank of Canada Stephen Poloz will take place. The event may cause an increase in CAD volatility, as economic forecasts for the region are heard.

 

Technical Analysis

Gold

Despite the fact that the entire world system is in a very difficult situation, major players such as the United States and China continue to demonstrate strength. China has been active in the Hong Kong issue and, most likely, will begin the hunt for democratically-minded residents of the city. On the other hand, the United States, has already expressed its disagreement and even managed to impose sanctions against a number of Chinese companies.

These events are forcing investors to pay more attention to defensive assets such as gold. The graph of the precious metal resembles a figure of the continuation of the “flag” trend. Probably soon we will see the return of the bull trend.

EUR/USD

After the quotes failed to break through the resistance level of 1.0000, the next reduction to the lower boundary of the 1.08000 channel became relevant again.

EUR/JPY

We expect strengthening from the currency pair, as the “head and shoulders” figure was previously formed. In addition, the chart is now near theupward support level.

 

EUR/JPY on this day in history

  • Since 2000, May 26th has been a trading day 13 times.
  • On 61% of those days, the asset finished trading with growth.
  • The maximum strengthening range was 1.81%.
  • The downward trend was limited to 1.56%.

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