Market News and Charts for April 10, 2020
Hey traders! Below are the latest forex chart updates for Friday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The pair will continue to move higher in the following days after it bounced back from a major support line. Canada had its largest unemployment change in history at -1,010.7K. Its unemployment rate also rose to a staggering 7.8%. Aside from Canada, other countries are also experiencing a slump in their unemployment figures following the coronavirus outbreak. On the other hand, New Zealand is facing the largest drop in economic activity courtesy of COVID-19. In line with this, the New Zealand government is turning to loans to counter the economic effect of the coronavirus. Government debt is expected to balloon from 19.5% of the country’s GDP to 50%. The action was made following warnings from experts that dropping the interest rate to zero would only hurt the New Zealand economy. The country last cut rates in March 15 by 75 basis points. Canada, on the other hand, slashed 100 basis points in March.
The pair failed to break out from a key resistance line, sending the pair lower towards the nearest support line. The United Kingdom posted a disappointing result for Gross Domestic Product (GDP) month-over-month (MoM) report. Figure went down from zero percent growth in February to -0.1% last month. As for January, the figure was 0.3%. Analysts see this as a sign for an impending drop in the UK’s first quarter GDP 2020 result. In addition to this, the country’s prime minister is currently in the ICU (Intensive Care Unit). Boris Johnson tested positive for coronavirus in the last week of March and just a week after the news, he was hospitalized. Foreign Secretary Dominic Raab temporarily serves as the country’s head. On the other hand, Fed Chair Jerome Powell unveiled the largest stimulus package in the world at $2.3 trillion yesterday, April 09. This amount was higher than the $2 trillion package signed by the US government.
The pair will bounce back from a major support line, sending the pair higher towards its previous high. The European Union is starting to take action to contain the economic impact of the coronavirus. The European Central Bank (ECB) promised to buyback junk bonds in the European Union. The central bank has already allotted $1.2 trillion on this. Analysts are also expecting the central bank to give up on defending its interest rate. The ECB currently has a zero percent interest rate. Lowering the rates further will put the ECB along with the Swiss National Bank (SNB), Danmarks Nationalbank, and the Bank of Japan (BOJ) into negative territory. In other news, Canada had its largest unemployment change in the country’s history. In addition to that, unemployment change dropped by 7.8%. Investors and traders are waiting for any action by the Canadian government to weigh down the economic impact of the coronavirus.
The pair will continue to move higher in the following days towards a downtrend channel resistance line. Despite warnings from analysts that New Zealand is facing the biggest economic downturn in history, investors are still optimistic with the NZ government. Governments play an important role in making sure that the coronavirus pandemic is under control. To some extent, governments can introduce fiscal and monetary stimulus along with their central banks to offset the economic threat of the virus. Among the countries that are receiving praise from the international community was New Zealand. NZ recorded only 1 coronavirus related death in the country as the world loses control on the increasing number of COVID-19 cases. Meanwhile, Japanese Prime Minister Shinzo Abe declared a “State of Emergency”. This was amid the increasing concern of coronavirus cases in the country with numbers already exceeding 5,000.
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