Hey traders! Below are the latest forex chart updates for Monday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
EUR/CZK
The pair will reverse back towards a major support line in the following days. Czech Republic is one of the leading countries in Europe who are starting to lift restrictions amid the global lockdown. The country already lifted some measures on social distancing last April 09, including travel restrictions. This will allow the country’s citizens and foreigners to enter and exit the country. In relation to this, Hyundai is bringing back its operation in Czech Republic. Analysts expect Czechia to gain advantage against other manufacturing reliant economies like Germany. Furthermore, recovery in the country is expected to be shorter compared to those who are extending their restriction. As a result, the economic impact of the coronavirus will be smaller. The EU’s economic powerhouses, Germany and France, is expected to suffer the most. These countries were already in an economic contraction prior to the coronavirus outbreak.
USD/HUF
The pair will continue to move lower in the following days towards a key support line. The International Monetary Fund (IMF) downgraded Hungary’ s economic growth outlook to -3.1%. Despite being in a contraction, the global financial institution reaffirmed that Hungary is a resilient economy. During the 2008 Global Financial Crisis, the country had a minimal impact from the global recession.
On the other hand, despite the record-breaking stimulus package by the US government and the Federal Reserve, the US is expected to have a deep recession. The country recently unveiled a $2 trillion and $2.3 trillion package to ease the economy. However, as death in the country surpassed the 40,000 mark, the US might be forced to impose a total lockdown. In this case, the US economy will suffer the biggest drop in its economic activity since the Great Depression. In addition to this, unemployment in the US reached 5.2K last week.
USD/MXN
The pair will fail to break out from a key resistance line, sending the pair lower in the following days. Mexican President Andrés Manuel López Obrador made an unorthodox move to prevent the country’s economy from collapsing. Mexico’s economy has been struggling in the past few months amid the protectionist policy of US President Donald Trump. Under his “Make America Great Again” campaign, Trump started the trade war which hits emerging economies. In addition to this, he forced neighboring countries – Canada and Mexico – into ratifying NAFTA (North American Free Trade Agreement). As the Mexican economy was facing challenges, investors and traders lambasted AMLO for his frugal economic policy for coronavirus. On the other hand, the US unveiled a record-breaking fiscal stimulus to contain the virus. The US government created a $2 trillion stimulus package while the Federal Reserve unveiled $2.3 trillion economic aid.
USD/NOK
The pair will bounce back from its current support line, which will send the pair higher towards the nearest resistance line. In March, Norway saw its unemployment skyrocketing by 350%. The same is true for the United States. America saw jobless claims posting the highest recorded figure in its history. On March 28, jobless claims reached its peak at 6867K. Analysts further warned that global unemployment will continue to soar in the coming months once businesses feel the economic impact of the coronavirus. However, between Norway and the US, Oslo will take the deepest hit from the coronavirus. Aside from the pandemic, Norway is feeling the pain from the oil price war between Russian and the Saudi led OPEC (Organization of the Petroleum Exporting Countries). Despite agreeing on the production cut, the price of crude oil will continue to plummet amid lower demand for oil due to the global lockdown.
