EUR/USD: continuation of negative dynamics
The euro shows a slight strengthening in pair with the US currency, restoring the positions lost the day before due to which the trading instrument updated the local minimum on May 16. The asset is located within the 1.0430 mark within the uptrend in anticipation of new positive signals for further strengthening. Market activity remains at a low level, because bidders refrain from opening deals, intending to wait for the results of the summits of a number of regulators this week, the central event among which is the US Federal Reserve summit, whose decision on further monetary policy will be published tomorrow.
- Resistance levels: 1.0459, 1.0500, 1.0562, 1.0600.
- Support levels: 1.0400, 1.0350, 1.0300, 1.0250.
USD/CAD: data from the USA on prices from manufacturers are expected
The USD/CAD trading instrument is trading with upward dynamics, testing the 1.2905 mark.
Earlier, StatCan released statistics on the construction sector of the economy, in which the volume of investments has been increasing for seven months in a row, increasing by 2.7% in April to reach 20.0 billion Canadian dollars. According to the report, the amount of financing for the construction sector increased by 3.2% of the residential segment and by 1.4% of the non-residential segment. Statistics confirm the stable position of the Canadian real estate market with a high level of inflation. At the moment, traders are focusing their attention around the data on sales volume of the manufacturing sector, in which the indicator is expected to decline from 2.5% last month to 1.6% this year.
- Support levels: 1.2763, 1.2525.
- Resistance levels: 1.2937, 1.3077.
Gold Prices
The price of gold is moving with a weak corrective growth, making attempts to move away from the local minimum on May 18.
Earlier, the asset showed a strong trend of "bears" due to the high probability of announcing the next wave of the spread of coronavirus infection in the territory of China. According to confirmed data, the Shanghai authorities initiated a mass marathon to test the population in most urban areas, while citizens of some areas were banned from moving around the city. Official Beijing has confirmed a new round of the growing number of Covid-19 cases, which is why a number of enterprises may close again. The level of demand for the precious metal continues to decline due to the resumption of growth in the yield of US Treasury bonds, during which the level of 3.301% was reached, reaching the level of 3.157% the day before. Market participants continue to refrain from opening deals for the long term, waiting for the minutes of the meeting of the American regulator, announced on Wednesday.
- Resistance levels: 1869.49, 1878.84, 1900.00, 1920.00.
- Support levels: 1850.20, 1823.09, 1800.00, 1775.00.
Oil Market Overview
Quotes of North American WTI light crude oil are trading with an upward correction at the 118.54 mark within the framework of a fundamental negative factor.
First of all, the panic was intensified by a report from Bloomberg publishing house, which confirmed the information about the reduction of Libyan oil production capacity by 90% against the background of political instability in the eastern regions, which provoked panic among investors. Thus, the level of supply at the sites has already collapsed due to disruptions in the supply of raw materials and a trade embargo on energy carriers from the Russian Federation. Libyan production of "black gold" fell to 100 thousand barrels per day against 1.2 million barrels on the day of last month, hitting the overall statistics of the OPEC+ cartel.
- Resistance levels: 120.53, 126.41.
- Support levels: 113.76, 106.75.