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Dollar dives, decoupling from stumbling stocks ahead of Trump’s Chinese announcement

The US dollar remains on the back foot, with EUR/USD topping 1.11, despite a worsening market mood related to Sino-American relations. President Donald Trump will announce actions against China following Beijing’s tightening of its grip on Hong Kong. The calendar is packed with events on the last day of May.

Sino-American tensions: China approved its new security law, limiting HK’s autonomy. While the financial hub’s importance in the Chinese economy is diminished in comparison to the past, the clash joins additional grievances between the world’s largest economies, which include Huawei, human-rights in Xinjiang, and more. Beijing’s aim for a “peaceful reunification with Taiwan” is also causing shivers down investors’ spines

US data published on Thursday has been mixed, with a downgrade of first-quarter Gross Domestic Product to -5%, a tumble in Durable Goods Orders, and another multi-million increase in initial jobless claims. However, the first drop in continuing claims is encouraging.

Friday’s agenda including several indicators for April, including personal income, personal spending, and other figures.

Core PCE, Personal Spending and Income Preview: The fall of records, where the wage earner leads, the consumer is sure to follow

Jerome Powell, Chairman of the Federal Reserve, will speak late in the American session, yet may have limited room to move markets after several public appearances in past weeks.

Eurozone stimulus: Chancellor Angela Merkel is set to deploy an additional €100 billion to Europe’s largest economy. The reports come on top of the European Commission’s plan to raise €500 in common eurozone debt to be handed out in form of grants. Brussels’ plan is backed by the largest countries but the “Frugal Four” has reservations. Nevertheless, that is the main factor boosting the common currency. Inflation figures are due out on Friday:

Gold prices have stabilized around $1,720, above the lows but below the multi-year highs. WTI oil is on the back foot, edging lower alongside stocks.

https://www.fxstreet.com/news/forex-today-dollar-dives-decoupling-from-stumbling-stocks-ahead-of-trumps-chinese-announcement-202005290530



According to Trading Central (3rd party RIA) the AUDUSD is long positions above 0.6365 with targets at 0.6685 & 0.6850 in extension.

* Past performance is not a guarantee of future performance

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10757273

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 0.6850
1€ 2,999.40€ 1,499.70€ 1,710.00
5€ 14,997.00€ 29,994.00€ 8,550.00
10€ 29,994.00€ 59,988.00€ 17,100.00
25€ 74,985.00€ 149,970.01€ 42,750.00
50€ 149,970.01€ 299,940.01€ 85,500.00

According to Trading Central (3rd party RIA) the EURUSD is long positions above 1.0870 with targets at 1.1145 & 1.1235 in extension.

* Past performance is not a guarantee of future performance

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10757266

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 1.1250
1€ 3,333.33€ 1,666.67€ 1,305.00
5€ 16,666.67€ 33,333.33€ 6,525.00
10€ 33,333.33€ 66,666.67€ 13,050.00
25€ 83,333.33€ 166,666.67€ 32,625.00
50€ 166,666.67€ 333,333.33€ 65,250.00