What you need to know on Thursday, May 28th:
Speculative interest remained sensible to sentiment-related headlines, trading in consequence. The main risk-negative factor was renewed tensions between the US and China, as the US government announced its studying sanctions on Chinese authorities and business over the recent developments in Hong Kong. US Secretary Pompeo officially declared Hong Kong “no longer autonomous,” after China’s intervention.
The EUR/USD pair rallied after thee EU Commission that proposed a 750 billion euro recovery fund. Also, the next EU budget proposed by the organism will be worth €1.1 trillion and will include the coronavirus recovery fund, according to sources familiar with the matter. The pair peaked at 1.1030 and settled around 1.1000.
Brexit-related headlines weighed on the Pound. According to PM Johnson’s spokesman, the UK has no will to extend the transition period beyond December 31. The EU and the UK will resume talks next week. GBP/USD finished the day around 1.2250.
Commodity-linked currencies were the worst performers, despite the positive tone of equities as gold and oil both fell. The bright metal, however, recovered ahead of the close and settled at around 1,712. Crude oil prices were sharply lower, losing around 5% after Exxon Mobil CEO Darren Woods mentioned Exxon expects a 10% decline in demand in 2020 due to lost economic activity. Focus now shifts to US stockpiles data.