What you need to know on Friday, May 29th:
The greenback gave up the ground gained on Wednesday, although there was no particular catalyst related to its slide. Data from the US was mixed, as Durable Goods Orders fell by a new record of 17.2%, although better than the -19% forecast. The economic contraction in the country was revised lower to -5.0% for the first quarter of the year. Continuing claims, however, fell by almost 4 million to 21 million.
The EUR/USD pair approached 1.1100, as the shared currency continued to be supported by the EU Commission proposed coronavirus’ aid package.
The Pound also benefited from the upbeat and comments from local authorities, although GBP/USD was unable to reach fresh highs, amid caution ahead of the next round of Brexit talks, scheduled for the next week. , BOE’s Saunders said he had nothing to add to what Governor Bailey said on negative rates. “I would not rule out negative rates, that does not mean I would necessarily rule it in,” Saunders added.
US President Trump opened another trade front, this time with social media. He prepared an executive order meant to regulate the way Twitter, Facebook or Google control their content.
Crude oil prices rose, with WTI reaching $34.00 a barrel despite a discouraging EIA report which showed that stockpiles in the US grew by 7.92 million in the week ended May 22, much worse than anticipated. The rally was underpinned by increasing demand for US gasoline and speculation that the OPEC+ could extend its output cuts.
Gold ends the day with modest gains around 1,717 after reaching an intraday high of 1,727.15. A better market mood weighed on the demand for the safe-haven asset.