The Euro found itself under pressure. Overview for 25.05.2020

25.05.2020

 

On Monday morning, the major currency pair is looking neutral but bears may get active at any moment. 

EURUSD is looking rather weak early in another week of May. The current quote for the instrument is 1.0890.

The key factor that supports the American currency these days is its status of a “safe haven” asset. Last week, China started its National People's Congress, where policymakers started discussing a new national security law. Investors are afraid that the idea that forbids terroristic and separatistic activities may lead to non-observance of rights and freedom of the Hong Kong population. Such a thing already happened in the history of Hong Kong and nothing good came of it. 

Another thing is that the White House may interfere. In this case, market players will surely try to escape risks. The new security law is believed to have a significant influence on relations between China and the USA. And a new phase of the US-China conflict is the last thing the post-COVID world needs right now. 

Today is a holiday in the United States, Memorial Day, that’s why there will be no numbers from there. New reports will be published not earlier than on Tuesday, while most of them are scheduled for Thursday (Personal Spending and Income, Wholesale Inventories, and Revised UoM Consumer Sentiment). At that time, investors’ attention may switch from China to morу “earthly” things. 

Attention!

Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.