May 18-22, 2020. Will we bomb the economy or not?

2020-05-17

Next week there will be several speeches by Fed Chairman Jerome Powell, to which the FOMC protocols will be added. It is likely that the positive mood of the head of the Fed may help strengthen the US dollar. In this case, the rest of the currency is waiting for a downtrend.

Trends in Asian currencies will determine the monetary policy of China. The theme of China and the United States is again on the first line of the daily financial agenda. On the one hand, the White House administration and the Chinese government are trying to establish a trade deal dialogue, while both leaders are building up confrontation.

The US President speaks of a possible severance of relations with China, reinforcing the words with actions against Huawei, to which the Chinese authorities promised to give an answer. If this plot develops, it can overshadow Powell’s positive speeches and damage the dollar.