Market News and Charts for April 16, 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!
The pair will continue to move higher in the following days towards its 6.0000 price level. The single currency has been in a rally against the Brazilian real since February 25. However, its upward momentum has been halted temporarily after Europe became the center of the coronavirus pandemic. As measures to contain the deadly virus proved to be working, some EU member states are now starting to reopen their economy. In addition to this, finance ministers from the EU member states already agreed to the €500 billion economic aid. This, in turn, will reinstate the recent rally of the single currency.
Meanwhile, Brazil is struggling to ease the coronavirus impact on its economy. It was reported that the Brazilian government and the country’s largest banks are in talks on bailing out companies. However, analysts are worried if Brazil can increase liquidity in the market after it incurred a budget deficit for the 10th consecutive year.
The pair w.ill break out from its recent high, sending the pair higher to reach its all-time high. The United States took the hit the most among the countries affected by the coronavirus pandemic. Current COVID-19 cases in the country reached 645,000 while deaths were recorded at 25,500. Despite this, the US government and the central bank have more tools on its monetary policy. US President Donald Trump signed a $2 trillion stimulus package, making it the largest economic aid in the world during that time.
However, it was quickly overshadowed by the Federal Reserve after it unveiled a $2.3 trillion package. On the other hand, cases in Brazil were only at 29,000 and deaths at 1,800. However, the Brazilian government is having a hard time easing the market. This was due to the budget deficit incurred by the government this year. 2020’s deficit was the 10th consecutive budget deficit by Brazil.
The pair will continue to move higher in the following days to retest its previous high. Europe became the center of the coronavirus pandemic in March. This prompted countries to lock their businesses to contain the virus. After a month of continued efforts by the local governments, several European countries are now lifting their lockdown.
In Romania, the finance minister of the government gave an outlook on when investors can expect the country to recover from the recent crisis. According to the FM, recovery will begin by June to August. Meanwhile, President Donald Trump is ramping up the US government’s efforts to reopen the economy in May. Investors and traders are looking for quick recovery of the local market to help them recover their losses during the lockdown. The announcement by Trump made the US stock market rally in recent days. The strength in the American economy was also visible in the US dollar.
The pair will bounce back from an uptrend support line, sending the pair higher towards its previous high. The Norwegian krone’s rally is about to come to an end. This was following the increase in the crude oil inventories report of the United States. The inventory in the US was now at its highest level in the country’s history as the coronavirus pandemic hits demand for the black gold.
In addition to this, crude oil prices dropped to its 8-year low at $20 per barrel. The decline in the price overshadowed the recent optimism brought by the accord between OPEC (Organization of the Petroleum Exporting Countries) and its allies. On the agreement was the cumulative production cuts by OPEC+ to buoy the crude oil prices. However, analysts warned that this cut will not be enough as the world is in a lockdown. Norway is a major exporter of oil in the global market. Its sovereign wealth fund was founded on the surplus of oil exports.