GBP/USD to continue on downtrend
USD/CAD expected to edge higher
USD pairs set to rally
Upcoming News and Events and their Expected Market Impact
This week we can expect a lot of volatility produced by a number of upcoming events and data releases such as FED minutes, Bank of Canada’s Interest Rate Decision, UK’s GDP and highlights from the latest OPEC meeting.
How will the markets respond to all the aforementioned events? The assets that will be in focus this week will be on USD/CAD, EUR/GBP and USOIL and US equities.
How is the pound likely to behave this week?
GBP remains vulnerable to the downside as political uncertainty in the UK creeps up after PM May slipped in the weekend polls! The EUR has gained significant momentum adding more than 100 pips, in the past 5 days, against the weakening sterling. Contrastingly, the GBP/USD is expected to dip as the pound weakens and the dollar strengthens on a deluge of strong data.
What could support the dollar this week?
On Wednesday, May 24, USDCAD is expected to edge higher if the BOC choses to keep rates unchanged so investors will be looking to buy dips especially below the $1.35 margin!
FOMC minutes are also expected on Wednesday and investors will be on the lookout for any hawkish comments or hints towards future rate hikes which will push USD pairs higher.
On Friday, May 26, the USD is expected to gain further support as forecasts point to higher U.S. Core Durable Goods Orders.
What could affect oil prices on Thursday
Investors will most likely be looking to buy USOIL and CL_BRENT at low prices and sell any rallies produced by the OPEC meeting on Thursday, 25th of May.
Source: Investing.com / BDSwiss Research team
*Please note that the contents of this article should not in any way be construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to any financial instrument, in any manner whatsoever.