The AUDUSD pair during the trading session on Wednesday fell, retreating from a local maximum of 0.6679. During the day, the Australian dollar against the US competitor lost 0.4%, completing trading at 0.6623.

Euro to dollar EURUSD forecast today 05/27/2020
 

The dollar basket index USDX on the eve fell by 1%, which was the largest intraday decline since March 27. The dollar fell both against the currencies of developed economies and against developing ones, which indicates a strong trend against the US currency. The dynamics of the debt market confirms this trend: the yield spread of 10-year German / US government bonds is growing. The only thing that bothers you is the high volume of repo transactions in the American interbank lending market. On Tuesday, US banks borrowed $ 34.5 billion from the Fed, the highest level in two weeks. Bankers are in need of dollars and in such periods the dollar does not fall much. Now the quotes of the EURUSD pair are in the area of ​​psychological level 1. 1000 - the pair tried to break this level twice in the last 4 weeks, but both attempts were unsuccessful. Given the increased demand for repos, today's third attempt may also be unsuccessful. But if the euro nevertheless breaks this level today and closes the day above 1.1018, then forex traders will find a good uptrend on Thursday-Friday.

EURUSD recommendation: flat 1.0930 -1.1020

Everything in this world is raging. It would seem that the draft Franco-German agreement on a fiscal stimulus of € 500 billion and the ECB's willingness to continue to do everything possible to save the eurozone economy in spite of an ambiguous decision of the German Constitutional Court will allow the EUR / USD pair to drop their chains and rush north. Moreover, the Bundesbank, on its own initiative, published on its website a positive report on the impact of QE on lending, the manufacturing sector and inflation. Alas, without the support of US stock indices, the euro is not able to grow. Their decline and increased demand for safe haven assets have taken the “bulls” out of the way for the main currency pair. 

Forex forecast EURUSD today 05.22.2020
 

This week, Fed Chairman D. Powell speaks almost every day, which rarely happens. But the current situation in the American and global economies is conducive to such appearances. The head of the Fed is setting investors on a sustained recovery in the US economy after the COVID-19 pandemic. Powell thus hints that the increase in the balance of the Fed is a completely natural and very necessary process. For the dollar, this is a negative signal, since the more money is printed, the lower the rate of this currency. This trend is confirmed by the yield spread between three-month US Treasury bonds and a similar Libor rate. Over the past year, the average value of this indicator was 0.37%. In March of this year, a 12-year high of 1.42% was recorded. At the moment, the yield spread is 0.23%.

EURUSD recommendation: Buy 1.0900 / 1.0880 and take profit 1.0980

Can the US economy become great again in 2021, according to Steve Mnuchin? Investors should not care about the answer to this question, but about the faith of financial markets in the words of the Minister of Finance. Judging by the fall of the S&P 500, shares are guided by the principle of "trust, but verify." The number of applications for unemployment benefits in the week of May 16 amounted to 2.4 million, the figure is constantly falling from its peak value of almost 7 million at the end of March, while the number of Americans receiving benefits increased from 22.5 million to 25.1 million per week. Business activity has gone from the bottom of April, but continues to be depressed, and people counting on a V-shaped recovery of the US economy, it seems, will have to look into the alphabet and look for another letter.