This is what you need to know to trade today Thursday, May 27:
The markets are relatively calm as the end of the month approaches. The dollar is underpinned by subtle comments from the Fed, while the China-US talks keep markets in supply. US GDP, durable goods orders and jobless claims are in the spotlight. Cryptocurrencies are retreating.
Comments on the Fed’s adjustment: The governor of the Federal Reserve, Randal Quarles, opened the door to discuss the reduction of the bank’s bond purchase scheme in one of the next meetings, depending on the conditions. His comments echo the subtle hints in the Fed meeting minutes and endorse the dollar. The Federal Reserve currently buys $ 120 billion in Treasury bonds and mortgage-backed securities per month.
Trade representatives of the United States and China they held trade talks among the world’s largest economies. Sources describe the talks as “candid,” a diplomatic term that reflects substantial disagreements. However, the mere discussions have supported the Asian markets and the Chinese yuan.
After a light Wednesday, the economic calendar is full in the US The second publication of the statistics of the Gross domestic product it is scheduled to show a minor update to 6.5% annualized growth in the first quarter.
It is predicted that weekly unemployment claims will continue their gradual decline and the most significant publication is Durable Goods Orders for April. Order volume likely increased last month, albeit at a slower pace than 1% in March.
April US Durable Goods Orders Forecast: Jobs Must Match Spending
In Washington, Republicans and the White House continue to discuss infrastructure spending plans, but the differences remain wide.
End of month movements: Money managers have been tightening their portfolios before the end of the month and a long weekend in the US and UK. Oscillating trade is expected.
The EUR/USD it is trading below 1.22 amid the strength of the dollar and after German consumer climate figures fell short of estimates at -7 points.
The GBP/USD is struggling around 1.41 after France joined Germany in demanding the quarantine of visitors from Britain. Concerns about the spread of the variant first identified in India and revelations about the government’s handling of the pandemic weigh on the British pound.
The cryptocurrencies They are on the defensive, with Bitcoin changing hands at around $ 38,000 and Ethereum hovering around $ 2,700. Elon Musk’s favorite DogeCoin remains volatile.
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