Today, the focus is on Russia’s allusions to the prematureness of new measures to reduce oil production, the reduction in Boeing staff, as well as the forecast for a decline in the U.K. economy.
Head of China, Xi Jinping, sees COVID-19 as a threat to national security and has promised to increase combat readiness. Affects Gold
Russia asks OPEC+ to analyze the situation before discussing an additional reduction in raw material production. Affects Brent
Bank of Japan to give companies additional loans totaling $16 billion. Affects Nikkei 225
Boeing has reduced staff by 25% in production in Winnipeg (Canada). Affects Boeing
Bank of England chief economist Andy Haldane expects a 20% decline in the U.K. economy in the second quarter of 2020. Affects GBP
ECB President Christine Lagarde will deliver a speech. This event may cause an increase in EUR volatility.
The U.K. has entered a crisis and pandemic in bad shape, as investors began to lay Brexit’s uncertainty risks. Until now, trade conditions have not been agreed between London and Brussels, which causes concern. Therefore, the Bank of England forecasts that the country’s economy will fall by more than 20% in the second quarter seem quite real.
Against this background, we can assume that the regulator will continue to lower the rate, which will become the main trigger for the depreciation of GBP/USD. The daily timeframe of the chart also indicates a likely weakening of quotes, since the price is under pressure from the downward resistance level.
The currency pair may suspend the decline amid support from the Fibonacci level. In addition, a bearish correction on oil is possible, which will also act as a bullish driver for the pair.
After several days of siege, the support level of 1.38700 was broken. A strong downtrend may occur.
USD/CAD on this day in history
- Since 2000, May 27th has been a trading day 13 times.
- On 69% of those days, the asset finished trading with growth.
- The maximum strengthening range was 0.7%.
- The downward trend was limited to 0.96%.