Jun 01 2020 0

It's the beginning of a new month, but a gloomy one. Protests and riots bursted out all over America, affecting the market heavily. How will the market react to that on Monday? Let's check out the latest news around the world and see what forex trading strategies we should choose today.

No special treatment

On Sunday, after Beijing passed Hong Kong's restraint bill, US Secretary of State Michael Pompeo said: "The United States currently has no basis to treat Hong Kong smoothly. than mainland China." This comment underscores the growing tension between the world's two largest economies amid a coronavirus pandemic and a new boom in pro-democracy protests in Hong Kong. Pompeo said that China's leaders had broken Hong Kong's promise to defend the autonomy.

The Hong Kong government said the acts of intimidation by President Donald Trump were "irrational" and the People's Daily, the Communist Party's mouthpiece, wrote that the plans were designed by President Donald Trump. Trump points out to be a rough intervention in Beijing's affairs. Trump, meanwhile, said he plans to expand the G7 leaders' meeting in the fall, likely after the November election.

US protest

Violence broke out in dozens of cities after the death of George Floyd, a black man in Minneapolis - he died after a white police officer pressed his knee to his neck for more than 8 minutes. A number of protesters aggressively stormed shopping malls, including Rodeo Drive in Beverly Hills and State Street in Chicago, while also burning police cars and city buildings. After witnessing more than 104,000 deaths from Covid-19, as well as unprecedented government intervention and major disruptions to business activities and daily life, scenes of unrest across the country The US is a bleak contrast to the recent optimism of the market.

Market before the storm

Asian stocks seem to have had a chaotic start as investors weighed the simmering tensions between the U.S. and China in the face of violent protests in several US cities. The yen appreciated. With the Amazon move to increase deliveries again and Apple to close some stores on Sunday, investors are trying to estimate how the level of violence in the U.S. over the weekend will impact how reopening the economy. Money market showed a quiet reaction at first, although the focus of attention would be on when the US stock exchange market opens. The S&P 500 index closed with a gain on Friday. The futures market in Japan and Hong Kong both increased. Global stocks increased for the 2nd consecutive month (April and May).

The upcoming RBA meeting

Reserve Bank of Australia Governor, Philip Lowe, is expected to keep both the cash ratio and the target of the 3-year bond yield unchanged at 0.25%. The bank only bought government securities on 2 days in May when the market was stable and borrowing costs decreased.

The question now is whether an economic recession can be avoided. The Australian economy is getting out of hibernation when governments start limiting the blockade. RBA saw a 10% decline in GDP in the first half of this year, with most of the contraction concentrated in the current quarter.

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Fanara Filippo

Hey, I’m Fanara Filippo. I’m the founder of this site. I'm currently living in Bangkok, Thailand. I have been trading forex for more than 5 years. You can read my articles about the best forex brokers on this page. Let’s review brokers today.


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