
Russian-Ukrainian conflict is influencing every economic aspect…
All eyes on the US-China relationship that set the market mood. How is it today?
The day has started with an encouraging Chinese report. Industrial production increased by 3.9% that signalized a strong recovery in supply. However, the country still struggles with a weak demand: retail sales decreased by 7.5% and fixed asset investment contracted by 10.%. Investors are looking closely at China as it was the ‘first out’ economy from COVID-19. That’s why they can roughly predict the pace of a future recovery of other countries. The Chinese data reveals only little and gradual improvements in economic activity. Moreover, it has proved that the government stimulus really works.
The worsening US-China relationship outweighed the mixed Chinese data. Donald Trump doesn’t have any intentions to improve the tough situation. He said that he could cut ties with China, it was the day after the US federal pension fund delayed investment in Chinese shares. That’s why the Chinese yuan didn’t react to the improvement in industrial output. If the price reaches 7.11, it can possibly fall further to 7.1. Resistance levels are at 7.129 and 7.149.
Despite the market uncertainty, the crude oil market has been slowly rebalancing as major producers cut supply. Also, economies started to reopen and, as result, demand has been gradually increasing. Elsewhere, Saudi Aramco decreased its sales to key buyers that also pushed the oil price higher. Nevertheless, oil is still down more than 50% this year. The way of recovery seems to be long and slowly.
Let’s look at the WTI oil chart. The price has been strongly ramping up since the end of April. It reached the recent April high at 28. The next barrier to the way up will be at 35. Support levels are at 23 and 20.
Russian-Ukrainian conflict is influencing every economic aspect…
Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
The Bank of England will announce its policy statement on December 16, Thursday, at 14:00 GMT+2 (MetaTrader time). It will affect all the pairs with the British pound.
The US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.
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