News, Trends, & Analytics 27.05.2020

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.

 

News

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

 

Calendar

07:30 GMT

ECB President Christine Lagarde will deliver a speech. This event may cause an increase in EUR volatility.

 

Technical Analysis

GBP/USD

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.

USD/MXN

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.

USD/CAD

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%.

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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