British economic’s unblocking stimulating sterling

[Focus on today] Friday, May 29, 2020

 

① 07:30 Japan’s unemployment rate in April

② 14:45 French CPI monthly rate in May

③ 14:45 The final value of France ’s first quarter GDP annual rate

④ 15:00 Switzerland KOF economic leading indicator in May

⑤ 17:00 Eurozone May CPI monthly and annual rate initial value

⑥ 20:30 US monthly core PCE price index monthly rate and annual rate in April

⑦ 20:30 US monthly rate of personal expenditure in April

⑧ 20:30 Canada’s March GDP monthly rate

⑨ 21:45 United States May Chicago PMI

⑩ 22:00 US May University of Michigan Consumer Confidence Index Final Value

⑪ 23:00 Fed Chairman Powell participated in a remote event

⑫ 01:00 The total number of oil drilling in the United States to May 29

Fundamentals:

 

[EIA Report: Commercial crude oil inventories excluding strategic reserves increased by 7.928 million barrels to 534.4 million barrels] EIA gasoline inventories decreased by 724,000 barrels, refined oil inventories increased by 5.494 million barrels and Cushing crude oil inventories decreased by 339.5 10,000 barrels; US domestic crude oil production fell by 100,000 barrels to 11.4 million barrels / day last week.

[The first-quarter GDP of the United States was revised down to -5%] The first-quarter GDP of the United States was revised down from -4.8% to -5%. The lowest level since the financial crisis in the fourth quarter.

 

[The number of US unemployment claims continued to decline for the first time since the epidemic occurred]

At the beginning of last week, the number of unemployed people in the United States reached 2.123 million, and the number of new unemployed persons reached 40.767 million in the past ten weeks, exceeding the number of unemployed in any period in history, which is equivalent to 1/4 of the U.S. labor force. The decline in the number of payments means that the reopening allows some people to avoid applying for unemployment benefits.

 

[The U.S. House of Representatives voted to pass a bill aimed at relaxing restrictions on small business bailout programs] The U.S. House of Representatives voted to pass a bill on Thursday to allow small businesses affected by the new crown epidemic to use the “Pay Guarantee Scheme” (PPP) more flexibly Loan funds that are exempt from repayment. The bill passed by the House of Representatives with 417-1 votes is still awaiting a vote by the Senate, and the Senate may make amendments.

 

[Saudi plans to extend the scale of production cuts to December, but Russia has not yet agreed]

Saudi Arabia and some other OPEC oil-producing countries hope to extend the current plan to reduce output by 9.7 million barrels per day until December, but Russia has not yet agreed to this measure. Some industry insiders believe that the recovery of demand may justify the gradual relaxation of restrictions.

 

[British Prime Minister announced the implementation of the next phase of unblocking measures from June]

On May 28, the British Prime Minister Johnson announced that in view of the fact that the current situation of the new coronary pneumonia epidemic in the United Kingdom has met the five test standards set by the government, the United Kingdom will implement the next stage of unblocking measures from June 1 , Sixth grade and pre-school resumption of classes, small-scale gatherings with no more than six people are allowed.

Technical side:

XAUUSD:

(Golden 1H chart)

From the perspective of the golden daily line, yesterday the K-line was broken through the head and foot, the shock pattern, the 1-hour chart box fluctuated, and you can sell high and sell low.

Pressure level: 1727

Support: 1713

Operation strategy: go long near 1715, target 1725, stop 1710

EURUSD:

(EURUSD Daily chart)

Judging from the daily chart of the euro against the US dollar , the market has risen for 3 consecutive days. Yesterday, Dayang broke through the platform, which is very strong, and there are inertial rises.

Pressure level: 1.1140

Support level: 1.1070

Operation strategy: Go long near 1.1070, target 1.1130, stop loss 1.1040

GBPUSD:

(GBPUSD 4H chart)

From the 4-hour chart of GBPUSD, the moving averages are long, the market is running above the trend line, and the bulls are ready to go. The probability of high before the subsequent breakthrough is greater.

Pressure level: 1.2430

Support: 1.2290

Operating strategy: Long near 1.2290, target 1.2390, stop loss 1.2250

USDCAD:

(USDCAD 1H chart)

Judging from the USD / CAD daily line, close the small Doji, and press against the 5th line above, maintain the same judgment as yesterday, and short the bottom of the anti-draw box.

Pressure level: 1.3860

Support level: 1.3470

Operation strategy: shorting near 1.3820, target 1.3680, stop loss 1.3900

USOIL:

(USOIL 1H chart)

Judging from the US crude oil 4-hour chart, the market is oscillating between BOLL’s upper and lower rails, and the upward trend line has not been broken. This trend may still step back on the line and continue to pull up.

Pressure level: 34

Support level: 31.8

Operation strategy: go long near 32, target 33.8, stop loss 31.5

*************** Notes for trading **************

1. Follow the trend and keep in mind of risk control

2. Entry can be added or minused by 5 pips, exit can be added or minused by 5 points

3. It is recommended to take half of the profit after 50 pips of profit, and the rest position with stop loss of entry.

4. Orders that arrive at the entry point before 12 pm are valid, and subsequent orders are invalid. (Unless specified)

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(The above personal strategy is written based on the objective and independent principles. It is for reference only and does not represent any direct operational advice to investors. Investors will be responsible for the profits and losses of the market.

 

MYFXSchool Analyst: Michael

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