Forex Today: Slow but fearful start to the week
|What you need to know on Monday, May 25th:
Holidays in the US and the UK this Monday would likely keep major pair lifeless within familiar levels. Still, the sentiment would likely remain sour amid persistent tensions between Washington and Beijing.
The latest catalyst to US-China tensions was Hong Kong, as Beijing announced a plan to improve the legal system concerning national security in Hong Kong, to which US President Trump responded that the country would “address that issue very strongly.” Other countries such as the UK, Canada, and Australia support the US perspective, and over the weekend, China condemned what it called “gross interference.” The market’s sentiment would likely remain sour at the beginning of the week.
The EUR/USD remained within familiar levels for a seventh consecutive week. The ECB and the US Federal Reserve, both maintained the doors opened for further stimulus to back the economies throughout the ongoing crisis, according to the minutes of their respective meetings.
The Pound was among the weakest dollar’s rivals, hurt by dismal local data, as Retail Sales plummeted in April, alongside BOE’s talks about negative rates. The lack of progress in Brexit talks added uncertainty.
Commodity-linked currencies closed the week with gains against the greenback, despite easing on the back of risk-aversion.
Gold settled at $ 1,734 a troy ounce, recovering from a weekly low of 1,717.17. Crude oil prices settled near monthly highs, posting substantial gains by the end of the week.
Cryptocurrency Market Update: Bitcoin and major altcoins are dormant after volatile week
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