First, a review of last week’s events:
EUR/USD. The European currency has been growing all week, even despite the rather weak statistics on the Euro zone economy. The pair was helped to break through the upper limit of the 1.0750-1.1000 corridor and rise to the height of 1.1145 by the news on the recovery measures in the EU, including the EU’s plans to conduct direct emission and seriously expand its budget. The Swiss Bank, which buys EUR in exchange for its national currency, also provided support to the euro.
By the end of the week, the hot activity of the bulls was somewhat cooled by the Donald Trump statement on new US measures against China. Typically, the euro falls each time, as soon as another exacerbation begins between Washington and Beijing, as this is an obvious signal for new economic problems in Europe. But, according to a number of analysts, the quotes of the European currency have already fallen so low that titanic efforts of the bears are needed for its further serious movement to the South. As a result, the pair sank only slightly below the center of the four-day rising channel and finished near the level of 1.1100;
GBP/USD. Last week, the dollar retreated not only on the onslaught of the euro, but also in pairs with the pound and yen. The British currency strengthened its position even despite the “dovish” statements of a member of the Monetary Policy Committee of the Bank of England, Michael Saunders. Such a development of events was expected by 30% of analysts, according to whom the pair should have returned to the central zone of the channel 1.2165-1.2650. The most accurate forecast was given by the graphical analysis on D1, which traced the rise of the pair to the height of 1.2350. It was in this zone that the pound remained most of the trading session, there it set its final chord;
USD/JPY. Most (65%) experts expected the return of the USD/JPY pair to the May 06 low in the 106.00 zone. And by the beginning of Friday, May 29, it did go down, but it only reached 107.07. Thus, the weekly volatility of the pair was less than 90 points. And this despite the fact that two months ago it easily flew ten times more in five days.
Yes, the situation with the COVID-19 pandemic is gradually returning to normal. But along with it, the difference in regulatory conditions between major currencies is gradually disappearing. Just look at the key G3 interest rates. Therefore, the volatility of the Japanese currency against the US is no longer the same as in March.
If we talk about the results of the week, the pair again found itself within the extremely narrow side corridor of 107.30-108.00, putting the final point at 107.80;
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