Trading Plan – Monday 4th May 2020: US-China tensions rise as countries take first steps out of lockdown

Mark NugentMay 2020, Trading Plan

Trading Plan – Monday 4th May 2020: US-China tensions rise as countries take first steps out of lockdown

Last Week

Events and Calendar
Many GDP misses (US, Eurozone, Canada); unlimited bond purchases by BoJ; 48% decline in China Q1 consumption.

Risk Sentiment
Essentially “on” until Wednesday, then “off”.

Asset Classes
Equities hold at key retracement levels.
GOLD respects resistance.
Oil holds just above 18-year lows.
FX – the one real mover is CAD and it’s down.

This Week

The US ramp up the rhetoric on China and their role in the spread of Covid-19. US Secretary of State Pompeo says there is a lot of evidence the virus originated in a lab in Wuhan. Meanwhile, Italy, Spain and many US states prepare to ease virus-related restrictions.

There are quite a few trigger points on the economic calendar that may affect the USD. In terms of trading, I will be looking at the only trending currency. Further, as many asset classes are consolidating, I will be looking for breakouts in accordance with sentiment. As always, the detail is in your Trading Plan video.

Happy trading.

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