Will the US economy help the greenback?
The United States will release the advance GDP growth rate for the previous quarter on July 30, at 15:30 MT time.
May 2020 forex season trading
April seasonal patterns weren’t supposed to work, but somehow they did. Even a strong fundamental issue such as the global recession amid the coronavirus couldn’t overwhelm it. That’s why May seasonal patterns may work as well.
However, it’s better to combine seasonal trading with technical and fundamental analysis. All together they will help you to make a successful trade.
Risk-off currency pairs
There is a good proverb: “Sell in May and go away”. It seems that it’s true for all currencies this month except safe-haven ones such as USD, CHF and JPY that will remain strong. According to Bloomberg, the US dollar index increased in 8 of the past 9 months of May. On average it rose by 1.53% in May over the past decade. Also, CHF should perform greatly in May as it's the strongest month over the past decade for the franc against the US dollar. However, take into account that CHF has been fallen for last 3 years.
Risk-on currency pairs
AUD has recently showed the steady rise, but according to seasonal patterns it’s time to stop it as May is going to be a weak month for the aussie. The average May decline over the past ten years was 2.33%.
Euro
May will be the worst time for EUR/USD, EUR/GBP and EUR/CHF. EUR/USD was decreasing in 8 of the past 9 years. The average May decline was 1.76% over the past decade.
Pound
This month will be disappointing for GBP/USD as the US dollar will be more favorable for investors amid the economic uncertainty. However, EUR should perform worse than GBP, that’s why EUR/GBP can drop.
Similar
USD is waiting for the jobless claims!
The US unemployment claims are announced on Thursday at 15:30 MT time.
Will the Australian Monetary Policy Meeting minutes support the AUD?
The Australian Monetary Policy Meeting Minutes are announced on Tuesday at 04:30 MT time.
Latest news
Main market movements on August 11
The market sentiment improved after the USA reported some decreasing in coronavirus hospitalizations. Gold dropped below $2 000 and the US dollar dipped down, while stocks surged. Let’s have a closer look.
All attention to NZD
The RBNZ will make the monetary policy statement on August 12 at 5:00 MT time!
What drives the market on August 10?
The market has started the week with a mixed sentiment…
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