Today, the focus is on the testimonies of Steven Mnuchin and Jerome Powell, the objectives of the European Commission, as well as the situation around COVID-19.
The U.S. Treasury Secretary, Steven Mnuchin and Fed Chairman, Jerome Powell expressed confidence in the measures taken to stimulate the economy. Affects S&P 500
The European Commission will focus on supporting health care and maintaining jobs. Affects EUR
Oxford Economics predicted Trump’s election defeat if the economy does not recover quickly. Affects USD
The head of the Reserve Bank of New Zealand, Adrian Orr, believes the negative rates to be premature. Affects NZD
Chinese doctors believe COVID-19 could have mutated because in new cases, the incubation period lasts more than 1–2 weeks. Affects Gold
U.K. Services Purchasing Managers Index (PMI) will be published. The previous figure was 13.4 points. If the latest data is higher, GBP may strengthen.
There will be a report on the number of new applications for unemployment benefits in the United States. Growth is projected at 2.4 million. If the real amount is lower, the USD may feel support.
A report on sales in the U.S. secondary housing market will be published. An increase of 4.3 million is expected. Deviation lower will have a negative impact on the USD.
The Chairman of the US Federal Reserve Jerome Powell will make a speech. Estimates and comments made by the head of the Reserve may lead to increased trading volatility.
The bad news about COVID-19 from China again provokes an increase in demand for gold. Recall that in several provinces of China, several outbreaks of disease were recorded. Bloomberg said yesterday that Chinese doctors have expressed concern over a possible coronavirus mutation, as in new cases the incubation period lasted more than 1-2 weeks.
Meanwhile, gold quotes reached a psychological level of 1750, which coincides with the upper border of the rising channel. Traders will likely make money by riding the lowering of the price.
The asset reversed from the resistance level of 1.08300. The bearish trend is likely to continue.
The asset continues to try to break through the support level of 1.38600. Against the background of the general bearish trend of the U.S. dollar, the probability of a bearish trend for the currency pair is quite high.
USD/CAD on this day in history
- Since 2000, May 21st has been a trading day 15 times.
- On 46% of those days, the asset finished trading with growth.
- The maximum strengthening range was 0.45%.
- The downward trend was limited to 0.82%.