What you need to know on Friday, May 22:
The risk has returned thanks to the Sino-American trade tensions. The greenback ended the day in a mixed fashion, although the major pairs remained at familiar levels.
Preliminary PMI estimates by Markit May have far exceeded market expectations, but remain well behind, suggesting a more marked slowdown for the second quarter of the year.
Tensions are mounting between the United States and China, amid trade differences and Washington accuses Beijing of being responsible for the coronavirus pandemic. The United States is tightening controls on Huawei’s use of its technology while launching an investigation into the origins of COVID-19. Chinese Spokesman for the National People’s Congress, Zhang Yesui, said that China would firmly defend its interests if the United States did anything to undermine the country’s basic interests.
EUR / USD peaked at 1.1008 but could not hold gains, ending the day in red.
GBP / USD was little changed for the second day in a row, as the British pound was affected by comments from BOE Governor Bailey, saying that the central bank is considering negative interest rates as an option.
Fedell Powell delivered a speech during the American afternoon. Among other things, he quoted John Kenneth Galbraith, who said that “economic forecasts exist to make astrology respectable,” a way of explaining the high levels of uncertainty in the midst of the coronavirus epidemic. He also said he believed the economy would recover, but it would take time.
The upturn in greenback demand weighed on gold prices during the United States afternoon, despite the risk-averse mood. Spot gold traded as low as 1,717, but rebounded before closing to around $ 1,725 per troy ounce.
Crude oil prices ended the day slightly lower, as tensions between the United States and China weighed on raw materials. WTI settled just below $ 34.00 a barrel.
Cryptocurrency Market News: Bearish Sentiment Gets Cryptocurrency Market