The markets are calm. Investors are waiting?

By 25/05/2020News
Morning Stock News

Gold   1693,50
(-2,34%)

EURUSD   1,0799
( -0,91%)

DJIA  24115
(-1,20%)

OIL.WTI  25,095
(-24,91%)

DAX   10609
(-4,65%)

The last week of May is full of news and macroeconomic statistics. This week the US Federal Reserve should discuss the current state of the economy and present a beige book on Wednesday. European Commission should release its plan to fight pandemic and economic crisis.


WTI

WTI

The market is now watching the coronavirus vaccine company race. The vaccine is a priority, because without it, no economic growth can be expected. Problems between China and the United States are already on the horizon. In an economic crisis, such tensions will only exacerbate the situation. The main news this week will be the report on applications for unemployment benefits in the U.S., from which investors will be repelled. Friday was for markets in sideways movement. S&P500 closed at 2955, DAX at 11093.


Euro

The Euro failed to break through the resistance at 1.0990. The sideways continue. In the nearest future Euro will continue to decline to support level 1.0770. As long as there is no cohesion in Europe and no concrete plan to fight the crisis, the Euro has no chance to grow.


Oil

The oil market is covered with optimism, which makes the price go up. But the interesting thing is that there is no news at all for such optimism, except for reduction of quarantine measures in countries. Probably, oil price quotes are growing on expectations of OPEC+ agreement prolongation as well as on free money supply growth. But all these expectations are very fragile. The OPEC+ agreement has not been agreed yet, and the revival of demand for goods and services is in great doubt. If all expectations are not met, the oil price will rush down from current levels of $33.6 per barrel.


Gold

Gold is stuck near its highs and can’t go above $1800 an ounce. Of course, the Coronavirus had a very strong impact on the haven assets, and the gold got the most out of this situation. By the end of the week, the dollar was losing its position and helping the gold to move up. Perhaps the last week of May will allow gold to try to take this irresistible level once again.


What’s waiting for us today?

08.00 German GDP
10.00 IFO Business Climate Index in Germany for May


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