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May 20, 2026

Risk Disclaimer: The example below is for illustrative purposes only and is based on price movements derived from Contracts for Difference (CFDs). The calculations reflect hypothetical outcomes using historical or specified price data for the relevant instrument on the stated date and are not indicative of future performance. Any reliance placed on this material is strictly at the user’s own risk.
The EUR/USD dropped to a five week low after higher than expected US inflation linked and retail sales data appeared to rule out any lingering hopes for a rate cut this year.
The British pound pair fell to a one month low as it became increasingly likely that Prime Minister Starmer would face a leadership challenge from at least one candidate from his own governing Labour party.
The USD/JPY increased after former Bank of Japan Governor Kuroda suggested that Japanese authorities are unlikely to continue short term intervention to support the yen, while stronger than expected US inflation supported the dollar.
Gold prices fell to a six week low as a stronger dollar due to higher than expected US data further reduced the chances of Fed rate cuts. Meanwhile Kevin Warsh was confirmed as the next Fed Chair and will take over from Jerome Powell in June.
US S&P 500 stocks ended the week slightly lower, but hit new all time highs early in the week due to strong tech earnings and optimism over the Trump-Xi summit.
Oil prices surged as traders expected US-Iran tensions to rise next week, as the possibility of further military action rises. Ongoing oil supply disruption will be combined with higher demand due to the US driving season, which is set to begin in the last week of May.