USD/HKD will break down from a major support line

The pair will break down from a major support line, sending the pair lower towards its all-time low. Despite the Federal Reserve retaining its current benchmark interest rate of 0.25% in yesterday’s report, the US dollar is still bound to fall. The catalysts were the country’s gross domestic product (GDP) and initial jobless claims reports today, July 30. The largest economy in the world is expected to publish a 34.1% contraction for the second quarter of 2020. If the expectations came close to the actual figure, this will be America’s largest quarterly drop in history. Meanwhile, analysts are expecting the increase from last week’s initial jobless claims report to continue for this week. Aside from that, the increasing tension between the United States and China will also take a toll on the country’s economic performance in the coming months. Trade war’s casualty, Hong Kong, gave a forecast on its Q2 figure at a 0.1% decline.