Market News and Charts for April 14, 2020

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

GBP/AUD

The pair will break down from an uptrend channel support line, sending the pair lower towards a major support line. The United Kingdom is under scrutiny following reports showing the country’s economy already slowing down prior to the coronavirus outbreak. This means that Britain suffers from its withdrawal from the European Union last January 31. This was despite the confidence shown by the British government over its decision to withdraw from the largest trading bloc. An analyst further warned that the COVID-19 pandemic might break the UK economy and sent it into recession. The country’s finance minister also warned that GDP growth might fall by 30% as the coronavirus creeps throughout the economy. Meanwhile, investors and traders are also cautious with the Australian dollar. This was following its two (2) reports showing Business Confidence and Business Survey report plunging to their lowest level in history.

GBP/CAD

The pair will bounce back from an uptrend channel middle support line, sending the pair higher towards the channel’s resistance line. Canada is under pressure as the country’s central bank interest rate decision looms. This was coupled by reports suggesting the country’s prime minister, Justine Trudeau, is looking for a possible successor for Bank of Canada’s presidency. The incumbent governor of BOC, Stephen Poloz, will be having the end of his 7-year term in June. Poloz led the three (3) times cut of the country’s benchmark interest rate last month. Cumulatively, the cuts totaled to 100 basis points. The country has now only 0.25% interest rate and the interest rate decision tomorrow could further slash the rate. This event tomorrow outweighs concerns on the UK economy. Reports show that the UK is already contracting prior to the March lockdown. This means that Britain is suffering from its withdrawal from the European Union on January 31.

USD/DKK

The pair will continue to move lower in the following days towards a major support line. Danish Prime Minister Mette Frederiksen said her government is planning to open the country’s economy soon. If this plan came into existence, Denmark would be the first country to open its economy outside Asia. This was following the country’s successful campaign against the deadly coronavirus. The Nordic country was also the first country in Europe to close its border and put the country in a lockdown. Analysts said the early response of Denmark to the pandemic has prevented the country of more coronavirus cases and deaths. Furthermore, the opening of the Danish economy ahead of other European countries will also put Denmark in an advantage. Meanwhile, the United States was among the last countries to impose lockdown on several states. As a result, the US has now the largest number of coronavirus related cases and deaths.

GBP/NZD

The pair will continue its downward movement, sending the pair lower towards a major support line. Investors and traders are shrugging off the decline in migration and visits in New Zealand. New reports show migration in the country dropping by 10.80%. Meanwhile, visitor arrivals dropped by 7.7%. Despite the massive implication of the coronavirus around the world, these figures were not the lowest in NZ’s history. Another report shows permanent and/or long-term migrations in the country increasing by 8,250. This is the highest figure in the country’s history. Analysts see this as a positive sign for the NZ economy. On the other hand, investors are worried with the recent report in the United Kingdom. Figures showed that the British economy have been declining since February or during the time that the UK withdraws from the European Union. Analysts further expected the UK economy to contract in the coming months due to coronavirus.