(By ATFX Analyst Team)
Key Takeaways
|
Global Market Review 20/05/2026
US major stock indexes closed lower on Tuesday, with Nasdaq leading the decline, as clouded prospects for a potential Middle East peace agreement weighed on market sentiment. The Dow Jones Industrial Average fell 0.65%, the S&P 500 slid 0.67%, and the Nasdaq Composite dropped 0.84%.
In fixed income and currencies, long-term US Treasury yields climbed to fresh highs, with the 30-year yield reaching its highest level since 2007, while the US dollar rose to a six-week high against the euro.
Gold prices tumbled nearly 2%, pressured by a stronger US dollar, surging Treasury yields, and persistent inflation anxieties that have pushed up expectations of rate hikes. Spot gold settled 1.9% lower at $4,481.28 per ounce. Crude oil prices edged higher as slow progress in US-Iran negotiations led the market to assess that the likelihood of a near-term peace deal has diminished.
Key Events Today:
NVIDIA Earnings Report ***
- 04:30 API Crude Oil Stock Change ***
- 09:15 CN Loan Prime Rate 1Y & 5Y MAY **
- 14:00 EU GERMANY PPI MoM APR **
- 14:00 GB CPI & PPI APR ***
- 17:00 EU CPI YoY Final APR ***
- 22:30 EIA Crude Oil Stock Change **
May 21st
- 02:00 FOMC Minutes ***
- 07:00 AU Manufacturing & Services & Composite PMI Flash MAY **
- 08:30 JP Manufacturing & Services & Composite PMI Flash MAY **
- 09:30 AU Unemployment Rate APR **
- 15:30 EU GERMANY Manufacturing & Services & Composite PMI Flash MAY **
- 16:00 EU Manufacturing & Services & Composite PMI Flash MAY **
- 16:30 GB Manufacturing & Services & Composite PMI Flash MAY **
- 20:30 US Housing Starts & Building Permits APR **
- 20:30 US Initial Jobless Claims ***
- 21:45 US Manufacturing & Services & Composite PMI Flash MAY ***
- 22:00 EU Consumer Confidence Flash MAY **
Markets Analysis 20/05/2026
- Resistance: 1.1639/1.1655
- Support: 1.1584/1.1568
Driven by ongoing geopolitical tensions and mounting market expectations that the Federal Reserve will maintain a cautious stance for longer, the US dollar has rebounded, pushing EUR/USD to a six-week low.
Analyst View: After registering its sharpest drop since early April yesterday, the EUR/USD is now hovering around 1.1600. The pair is awaiting directional cues from the upcoming Eurozone inflation data and the Federal Reserve minutes later today. Holding above this level is critical for bulls; failure to do so will expose the exchange rate to downward pressure, pushing it into a lower trading range.
Bias: Bearish in the short term
- Resistance: 1.3422/1.3454
- Support: 1.3349/1.3316
Mixed labour market data from the UK on Tuesday—showing the unemployment rate rising to 5% and employment falling by 100,000 jobs—coupled with a strengthening US dollar, caused the GBP/USD pair to erase earlier gains and retrace after reaching an intraday high of 1.3437. Markets continue to look at the upcoming UK inflation data and the Federal Reserve minutes for further direction.
Analyst View: After failing to sustain a breakout above the 1.3400 level, the currency pair pulled back under the weight of fundamental headlines. The key focus today is whether the pair remains capped below this level; if so, bears will retain short-term control, potentially pushing the exchange rate back towards this week’s low near 1.3300.
Bias: Bearish in the short term
- Resistance: 159.39/159.74
- Support: 158.62/158.28
Economic anxieties, fueled by tensions in the Middle East, have weakened the yen, allowing USD/JPY bulls to push the pair to a near three-week high on Tuesday. This marks a seven-day winning streak, with the pair now consolidating just above the 159 handle.
Analyst View: The pair is stabilising above 159, and short-term bulls could continue to push the pair higher. However, traders should note that market sentiment may turn cautious as the pair approaches the critical psychological 160 barrier. For now, the immediate focus is on resistance at 159.39 and 159.74.
Bias: Moderately bullish
- Resistance: 107.46/109.63
- Support:102.52/100.31
Although Donald Trump postponed the strikes on Iran, the lack of signs of a breakthrough in the stalemate between Washington and Tehran dampened some optimism about progress, driving crude oil prices to record another day of gains yesterday.
Analyst View: Crude oil prices extended their rebound to settle at a two-week high. As the upward channel extends, technical resistance above $104 remains a key barrier. In the absence of fresh headline drivers, bulls may adopt a more cautious approach to pushing prices higher.
Bias: Moderately bullish
- Resistance: 4540/4572
- Support: 4435/4394
- Resistance: 77.92/80.10
- Support: 70.84/68.69
With progress towards reopening the Strait of Hormuz, remaining slow and persistent inflation concerns continuing to fuel rate-hike expectations, spot gold came under intense pressure. Confronted with surging US Treasury yields and a rebounding US dollar, the metal broke below the key psychological $4,500 level overnight. It extended its decline this morning, ahead of the release of the Federal Reserve minutes.
Analyst View: Gold has recovered to its lowest levels since late March, settling near yesterday’s lows. Consequently, short-term bears may continue to push prices lower. The upcoming Fed minutes and further developments in US-Iran negotiations will likely determine whether gold tests its $4,400 downside target.
Bias: Under pressure
- Resistance: 49635/49853
- Support: 49281/49104
Elevated inflation concerns have raised expectations of Federal Reserve rate hikes later this year, pushing US equities lower amid global bond selloffs and a lack of breakthroughs between Washington and Iran. Yesterday, all three major US stock indexes closed lower, with the Dow Jones Industrial Average erasing its gains from the previous session.
Analyst View: Yesterday’s pullback in the Dow formed a tweezers top pattern, signaling a short-term bearish bias. The index now faces pressure to retest Monday’s lows, with all eyes on the upcoming Federal Reserve minutes for key guidance to see whether they can provide much-needed support.
Bias: Under pressure
- Resistance: 29499/29886
- Support: 28225/27832
A global bond sell-off put pressure on equities, sending the Nasdaq down more than 1% at one point yesterday, marking its third consecutive session of declines. As traders worry about further increases in US Treasury yields and potential Federal Reserve rate hikes, Nvidia’s earnings report—scheduled for release after today’s market close—has taken on even greater significance.
Analyst View: Nasdaq touched a nearly two-week low during yesterday’s session. After a technical break below its 10-day moving average, short-term downside pressure has intensified. The focus now shifts to whether the lower 20-day moving average will be the next target, while markets also await guidance from the Federal Reserve minutes.
Bias: Under pressure
- Resistance: 77938/78873
- Support: 74912/73993
Bitcoin had ticked slightly lower on Tuesday and was nursing a four-day losing streak that could extend to five, as risk sentiment took a hit amid no signs of progress in U.S.-Iran peace talks and a global bond sell-off.
Analyst View: BTC/USD extended its losing streak to a fifth consecutive day yesterday, though the downward momentum slowed. Having held firmly above the 76,000 mark for two straight sessions, the focus now centres on whether this level can serve as a base for a short-term rebound attempt.
Bias: Lower range consolidation
Enjoy trading! The content is for reference only. Please ensure that you understand the risk.
