Friday 29.05.2020
Asian Session
After Trump announced that he will proceed with new steps against China, due to that China passed a national security law curbing freedom in Hong Kong Asian stocks edge lower. Modestly dips were seen in Japanese stocks, with Japan index falling by 0.9%. Hong Kong index receded by 0.7%, while South Korea’s index rose by 0.3% and Shanghai composite index rose slightly by 0.2%.
| Asian Stock | Closed |
| Nikkei | -0.9% |
| Hong Kong HSI | -0.7% |
| China Shanghai SSE | +0.2% |
| KOSPI – South Korea | +0.3% |
US Stocks
US stocks rally ended up after Donald Trump announced that would hold a press conference on China, raising worries for a new tension between the two biggest world economies, despite the positive sentiment of last days that there is an optimism about economy’s recovery. Dow Jones fell by more than 0.6% to 25400 after gains of two consecutive days, while SP500 went down by 0.4% and Nasdaq composite index fell by 0.36%.
| US Stocks | Closed |
| DOW | -0.6% |
| S&P500 | -0.4% |
| NASDAQ | -0.36% |
Major Currencies & Dollar Index
EURUSD finally confirmed the bullish signal and surpassed well enough above the 1.10, reaching the 1.11 price level, amid positive investors sentiment after new stimulus package of 750 billion euros from the European Union, along with jobless claims report yesterday that was worse than expected with more than 2 million unemployed. Remains to see pair’s reaction today after consumer inflation report which is expected to fell by 1% in May from 0.4% the previous month. GBPUSD closed even higher yesterday, surpassing slightly above 1.23 level, despite some dovish comments from BoE’s policymaker Michael Saunders, regarding country’s monetary policy in early Thursday and he did not rule out the possibility of negative interest rates. Pound appreciated against dollar, as US economy contracted by 5% annualized rate during the first quarter of 2020, along with the negative jobless claims data report yesterday. USDJPY comes under selling pressure amid US and China tensions and the pair will be affected a lot today from Trump’s response to China’s security law for Hong Kong. The pair is currently traded at 107.1 and if break below 107 price level may go further to 106.8.
Gold Market
It seems that gold has strong support level at 1718 and we observed a consolidation after recent recovering from a drive below 1700 price level. Gold’s upside target is at 1740. According to CME there was lower open interest for fifth day in a row by nearly 1.3k contracts. The overall volume has decrease by 104k contracts, however the Relative Strength index is in an oversold area.
Oil Market
Crude oil rose by approximately $1 per barrel yesterday as the dollar was depreciated against a basket of major currencies. Brent crude for May delivery went up by 0.7% and WTI futures June expiry rose by 1.5% after Energy Information Administration report yesterday announced that US inventories showed a pick-up in refinery activity.
European Stocks
European stock market rallied yesterday after the massive EU stimulus plan of 750 billion euros along with fresh US unemployment, however closed the day by more than 1% higher.
On the data front 29-05-2020
| Time (GMT+3) | Event | Impact |
| 09:00 am | EUR Retail Sales (MoM)(Apr) | Medium |
| 12:00 pm | EUR Consumer Price Index – Core (YoY)(May) | High |
| 15:30 pm | CAD Gross Domestic Product Annualized (QoQ) (Q1) | High |
| 21:00 pm | USD Donald Trump’s News Conference | Medium |
