In the last week of May, the forex risk market rallied strongly against the American dollar on positive sentiments driven by renewed hopes for coronavirus treatment and economic recoveries.
Also, the China-US escalating tension fueled the forex market in support of the American dollar.
Other forex news trading signals also impacted the G7 currency trading over the busy week.
Forex news trading signals
Currency market research strongly suggests that US-China conflicts, COVID 19 effects, and oil prices forex news primarily affected the performance of G7 currencies in the week.
The US-China conflicts
The escalating US-China sour relationship further accelerated by China’s plans to introduce new security laws in Hong Kong.
This latest tension adds to the early conflict on how Beijing handled the global coronavirus pandemic.
The cold war is looming sooner than later as The United States of America plans to impose sanctions against Chinese officials in response to china’s interference with Hong Kong autonomy.
In response, China warned of retaliatory actions against America for any intervention in its affairs with Hong Kong.
However, on Friday, there was a sigh of relief upon the much-awaited President Donald Trump press conference as it lacked significant negative surprises.
COVID 10 pandemic battles
On positive forex news trading signals, Novavax Inc, the biotech company started human trials on its COVID 19 vaccines in Australia.
The preliminary results of the experiments are expected in July.
Also, in the frontline, Merck & Company, reveals deals to develop two potential vaccines and a drug test against the coronavirus.
Forex research data shows that there are ten vaccines under clinical trials and 114 under preclinical tests.
Worldwide over 6 million confirmed cases of COVID 19 had been reported, while death toll approaching half a million and the recoveries stand at 2.8 million.
Despite the battles, coronavirus figures continue rising in some countries while others like New Zealand have reduced cases.
A surge in oil demand
Oil prices rebound on positive forex news released by Gilead Sciences.
Trials of the remdesivir antiviral drug provided hopes for the potential treatment of coronavirus.
In addition, forex research correlated a lower increase in inventories to the rise in crude oil prices.
Furthermore, the production of oil dropped tremendously.
However, towards the end of the week, decreased demand for oil reduced earlier gains from $ 37.5 to $32 per barrel.
Other Forex News
And the “I can’t breathe” unrests that started on Friday in Minneapolis quickly spreading to other states of the US had dismal forex impact, but this could be felt in the coming weeks.
Also, the currency market research shows that Brexit uncertainty did not affect the financial
G7 Currency Forex news trading signal review
Table: the g7 currency review summary.
| Currency pair | 25thMay | 31st May | Average | Percentage change | Remarks |
| USD | 99.888 | 98.275 | 98.900 | -1.615 | Loss |
| EUR/USD | 1.0900 | 1.1104 | 1.1014 | 1.8529 | Gain |
| GBP/USD | 1.2190 | 1.2344 | 1.2288 | 1.4631 | gain |
| USD/JPY | 107.71 | 107.82 | 107.69 | 0.19 | Gain |
| USD/CAD | 1.3986 | 1.3771 | 1.3810 | 1.6075 | Loss |
| AUD/USD | 0.6545 | 0.6663 | 0.6624 | 1.9431 | Gain |
| USD/CHF | 0.9722 | 0.9614 | 0.9664 | -1.0040 | Loss |
| NZD/USD | 0.6101 | 0.6205 | 0.6179 | 1.5715 | Gain |
USD 2nd Consecutive Week Loss
A summary of forex news trading signals concluded that the US dollar index traded at its lowest since late March to hit 98.00 support level over the week.
Mixed forex news trading signals negatively impacted the American dollar.
First, the increasing tension of America with China signs indicating a possible cold war in the near future.
Also, the continued economic improvement of the countries emerging from COVID 19 lockdown favors risk appetite markets.
According to forex news trading signals, the horrendous financial data released by the US worked energetically against the dollar.
The dollar started the week at 99.888 and closed at 98.900, having lost nearly 2% of its value.
A strong appetite for riskier markets fueled by positive forex news negatively affected the dollar over the week.
Notably, the US index (DXY) rebounded towards the end of the week in response to China-US tensions forex signals.
EUR/USD Forex News Winner
Forex research analysis indicates that the EUR/USD currency pair finally broke above the 1.1000 resistance level, a position held since the last week of March.
The euro gained consecutively against the American dollar on each day of the week to close nearly 2% stronger.
For the record, the week gained the longest time since the last week of March and is expected to continue in the near term.
The euro responded positively to the Increased positive global sentiments while other forex news trading signals pulled down the American dollar.
First, the unemployment numbers continue to increase in the US, predicted at 8 million for May.
Secondly, the deep recession experienced in America and thirdly the continuing China-US tensions.
In addition, the European Union announced a 750 million euros recovery stimulus package supporting the euro through the week.
The package will have 500 million euros for grants and 250 million for loans to help its member states recover from COVID 19 effects.
GBP/USD
The British sterling pound rose significantly over the week, reaching a 1.2350 resistance level.
The GBP/USD currency pair started the week at 1.2190 and closed at1.2344, having gained 1.4631%.
The USD received undue pressure from negative forex news trading signals, namely: US treasury bond yield decline, coronavirus effects, reopening of other economies, and a reduced GDP.
However, towards the end of the week, traders became wary of China-US tension and rallied behind the safe-haven American dollar.
USD/JPY Loser
USD/JPY currency fluctuated over the week to lose 0.19 % of its value.
Weak economic data from Japan and the speculations of more stimulus plans from Japan’s central bank weakened the yen.
Another pressure came from positive global sentiments from economies opening and the development of COVID 19 vaccines.
Also, towards the end of the week escalating US-china tension affected performance USD/JPY.
The week price declines were witnessed on Tuesday and Thursday while the other days registered gains.
USD/CHF
More demand for the safe-haven Swiss franc and the weakening American dollar forex signals led to the downfall of the American dollar.
Also, weak economic data from America and the escalating China-US tension favored swiss franc safe-haven g7 currency pair.
In the early days of the week, positive global sentiments rallied the Swiss franc against the dollar.
The USD/CHF currency pair traded at 0.9722 Monday and closed at 0.9614 at the end of the week, having lost 1% of its value.
USD/CAD
The American dollar lost Monday sharply to Wednesday to the lowest of 1.370 in two and a half months but regained slightly on Thursday and Friday.
Early in the week, America reported terrible economic data that favoured the loonie.
In addition, the Canadian dollar gained more strength from positive global sentiments.
American dollar lost strength as oil prices increased according to forex research correlation data.
However, the USD thrived on the lost two days of the week in response to the simmering China-US tensions.
Besides, Canada posted a negative GDP growth rate. The low global oil prices do not provide much support to the loonie.
AUD/USD Stronger
In a bullish run, the AUD/USD currency pair gained 1.9431% over the week on the positive global sentiments but failed to jump over the resistance level of 0.6680.
However, risk forex signals of the China-US tensions reduced some gains made by the Australian dollar towards the end of the week on risk aversion.
Also, a review of currency market research data suggests that weak economic reports of the Australian economy affected the performance of this G7 currency pair.
In a positive forex news trading signals, reduced cases of COVID 19 opened the way to ease travel restrictions measures between Australia and New Zealand.
NZD/USD Healthy Gain
The NZD fluctuates against the dollar to emerge 1.5 715 % stronger.
On a risk aversion move, It registered a daily low on Friday in anticipation of US President Donald Trump’s press conference.
Earlier in the week, the New Zealand dollar rallied amid the weakening of the American dollar against g7 currencies to hit 0.6241 highest since mid-March.
Also, poor America’s economic data boosted the kiwi that posted good financial data.
Currency market research analysis indicates that positive global sentiments, coronavirus reduced cases, and a better economic report boosted the kiwi.
Must Read: NZDUSD profitable trade with a deeper pullback
Final Thought For This Week Forex Research
The three significant forex news trading signals primarily dominated forex market trading and will continue for an extended period amid the China-US tensions, seemingly heading for cold war supported the safe-haven G7 currencies.
According to the currency market research, the safe-haven: Japanese yen, Swiss franc, and American dollar were the week’s losers despite showing rebounds at the end of the week.
Despite dismal economic data, the continued easing on lockdown measures and sustained battles against COVID 19 provided strength for the risk appetite markets to gain against the USD.
