EURUSD had to retreat. Overview for 27.05.2020

On Wednesday, the major currency pair is trading lower than yesterday; it is responding to changes in the external fundamental background. 

In the middle of the week, EURUSD is correcting after having a quite successful Tuesday. The current quote for the instrument is 1.0962.

Investors are closely following external market conditions, which is a new law from China, which may complicate the observance of rights and freedom in Hong Kong. The White House has already had a chance to comment, while US President Donald Trump told about possible measures to be taken against China. 

The USA adores to intervene in the affairs of other states. It allows them not only to increase their role on the global stage and stand to the reputation of the world’s biggest “trouble maker” but also to print more money and write off some debts. Last time, the Hong Kong issue didn’t end in anything good: there were mass riots and violent civil disturbances and the country’s government required a lot of time and effort to lower the political intensity. The second wave may be much worse. 

The statistics published yesterday surprisingly showed that the New Home Sales indicator was 623K in April after being 619K in the previous month. The expected reading was much lower. 

The Conference Board Consumer Confidence increased up to 86.6 points in May after being 85.7 points the month before. It means that the country’s population is following the government’s efforts to eliminate the consequences of the COVID-19 pandemic for the economy and may restore their activity as soon as they can. 

There won’t be a lot of interesting statistics for EURUSD today, except for the Beige Book. Under such circumstances, the Euro investors will mostly respond to the news rather than the statistics.