Market News and Charts for April 02, 2020

Market News and Charts for April 02, 2020

Hey traders! Below are the latest forex chart updates for Thursday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!

USD/MXN

The pair will continue to move higher in the following days after it bounced back from its support line. The US Congress and President Donald Trump is preparing a new stimulus package following the $2.2 trillion stimulus recently signed. The efforts to ease liquidity in the market was due to the economic implications brought by the deadly coronavirus. Aside from the US, major economies have announced fiscal and monetary measures to aid their falling economy. Some went on to allocate 20% of their GDP to help industries who suffered from COVID-19. However, most of these efforts were not enough to cover the losses incurred by the companies and loss wages of employees. Among countries hit by the virus is Mexico. Finance Minister Arturo Herrera Gutiérrez said the country’s economy could contract as much as 3.9%. He further added that the most optimistic view that he can give to Mexico is a growth rate of 0.1% in the first quarter of 2020.

USD/NOK

The pair will bounce back from its current support line towards the nearest resistance line. The Norwegian krone will continue to lose its strength against the US Dollar. The coronavirus outbreak sent the unemployment rate in the country skyrocketing to 128%. The coronavirus was the latest challenge that the country is facing. Norway is also suffering from the price war between the Kingdom of Saudi Arabia and Russia. The disagreement between the oil producing countries regarding the oil production cut has sent the crude oil prices to its 18-year low. Oil producing countries like Norway and the United States are the most affected by the slump in the price of oil. As evidence, Norway Manufacturing Purchasing Managers Index (PMI) dropped to 41.9 points from 51.6 points previously recorded. US President Donald Trump has already offered to become a mediator between Russia and Saudi Arabia.

USD/PLN

The pair will continue its rally to revisit its previous high. Poland’s winning streak might come to an end due to the deadly coronavirus. The country is one of the fastest growing economies in Europe with a 4.0% growth rate in 2019. However, as COVID-19 creeps throughout Europe, analysts were expecting major economies to post negative GDP growth and enter a recession. For Poland, analysts gave an optimistic view of a growth rate of 2.0%. The Polish government is already taking measures to alleviate the current economic status of the country. In response to the economic effect of the coronavirus, the government will be providing a stimulus package of 212 billion zloty. The amount represents 9.2% of the country’s GDP. Despite these bold measures, analysts said this will not be enough. Around 69% of the firms said there is a possibility that they will reduce the number of employed people in their companies.

USD/ILS

The pair will continue to move higher in the following days towards the nearest resistance line. The cheap dollar is luring investors and traders to buy the greenback. Recently, the US signed a $2 trillion stimulus package to help the American economy. The stimulus was in addition to the series of stimulus already approved by the US Congress and President Donald Trump. Analysts further see the government and the Federal Reserves increasing liquidity in the market. The quantitative easing measures by the United States became a great opportunity for investors and traders to bet on the US dollar. Meanwhile, other currencies continue to fall against the US dollar despite the measures already introduced by their governments. Israel recently unveiled its own stimulus program worth $22.3 billion, almost double to the estimated economic impact of coronavirus. A new report confirmed that Israel’s health minister is coronavirus positive.