Key events of the week (25-31.05.2020)

22.05.2020 15:54|Forex conotoxia.com

Forex Trading is provided by Conotoxia Ltd., which has the right to use the Conotoxia trademark. Conotoxia Ltd. is regulated by CySEC (licence no. 336/17). 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The last week of May will not be rich in publications of key macroeconomic data. However, this does not change the fact that it could be very interesting, especially in terms of geopolitics. This in turn may affect the markets, as we have seen today.

But before we move on to the last week of May, we will summarize the minutes of the last European Central Bank meeting published on Friday. The ECB believes that the economy could contract by 5-12% this year, although growth was expected to resume as the restrictive measures were gradually lifted. The central bank is fully prepared to adjust all its measures in support of the euro area economy, including increasing the size of the Pandemic Emergency Purchase Programme (PEPP) and adjusting its composition, if and as long as necessary. However, policymakers also warned that monetary policy cannot solve these problems on its own and that fiscal policy must also play a crucial role.

Meanwhile, the last week of May will start with a long weekend in the US and the UK. On Monday 25 May the two main centres of trade in the world will be turned off. However, it is worth remembering the increase in tension between the US and China and the subsequent riots in Hong Kong. Things could gain momentum this weekend, which in turn could be seen in the financial markets after the mentioned long weekend.

From macro-economic data, it will once again be worth looking at the number of applications for unemployment benefits in the USA. It is likely that next week a total of 40 million Americans could be unemployed, which may hinder the return to economic growth. Personal spending is also likely to fall significantly, as retail sales have collapsed, representing just over 40 percent of total consumer spending. Hence, further aid packages for the US economy are possible and could be announced in the near future.


Daniel Kostecki, Chief Analyst Conotoxia Ltd.

Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.

66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.


See also:

May 22, 2020 11:25 am

Stock indexes with another argument for correction

May 21, 2020 11:09 am

Market brief – the markets are even more distant from reality

May 20, 2020 10:55 am

The vaccine, but not so fast? Index rises stopped

May 19, 2020 11:17 am

The euro is catching its breath with the chance to rebuild the economy more quickly after the crisis

May 18, 2020 11:56 am

Market brief – stocks and commodities on the wave

May 15, 2020 5:02 pm

Key events of the week (18-24.05.2020)

Start chat