Market News and Charts for April 23, 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 British pound hustles to prevent the euro from gaining momentum earlier this week. Bearish investors are expected to grab hold of the pair’s direction and push the pair downwards to its support level. Moreover, Brexit talks are set to resume this week amidst the ongoing pandemic that has overshadowed it in the news. Trade talks between the European Union and the United Kingdom are set to take place soon with both parties wanting to break the current stalemate. The UK Prime Minister Boris Johnson who has just recently recovered from the virus reaffirmed that Britain would not ask for another extension on the December 31 exit date. Meanwhile, the bloc members are demanding that the UK remain within until the end of the existing EU framework. The single currency would mostly stand weaker against the pound sterling considering that the difference between bloc members has shown up thanks to the devastating pandemic.
The EURJPY is heading downwards towards its support levels in the short-term trading. After the pair reached its resistance in the previous sessions, bears have firmly held a grip on the direction of the pair. The volatility of the Japanese yen comes as the financial market scrambles towards safety following the historic crash of the oil market. This means that the safe-haven appeal of the Japanese yen is irresistible as ever towards scared investors. Meanwhile, the euro remains vulnerable as the economies in the bloc remain paralyzed due to the virus. The euro is under pressure after the PMIs plunge due to the virus. The focus of investors now turns to the upcoming meeting of the European Council members to try and come up with a consensus agreement on a stimulus package. It’s reported that the package will be worth 2 trillion euros and will be allocated to help Southern European countries that are hit by the unfortunate pandemic.
The Canadian dollar steadies against the US dollar today as the oil market finally bounces back. Bears are taking advantage of the broad weakness of the US dollar thanks to the massive second wave of stimulus package for small businesses in the United States. The pair is expected to gradually go down to its support levels in the coming sessions as bears hold on to the momentum. Just recently, the US Senate has passed another $484 billion relief spending bill that will increase the already massive fund for the fight against the coronavirus. The new relief package will bring to the total US coronavirus package to almost $3 trillion. Technically speaking, the direction of the Canadian dollar is widely influenced by the US dollar’s sentiment. However, in its matchup, the regaining confidence in the crude market and the recent stimulus package wave caused the safe-haven appeal of the US dollar to falter thus having bearish sentiment.
The New Zealand dollar is working hard to regain some of its major losses against the US dollar from the previous sessions. The pair is heading towards its resistance as the New Zealand dollar takes advantage of the weakness of the US dollar. The improved investor sentiment in New Zealand has brought back strength to the kiwi however, it’s run will be tested by the upcoming reports about its economic activity. The New Zealand dollar has broadly been following the current global conditions, meaning that it rises when the financial market rises and vice versa. Also, it remains uncertain whether the pair will break past its resistance as the kiwi feels the pressure of QE signals. It’s been reported that the Reserve Bank of New Zealand may soon start buying bonds from the government soon. Adrian Orr, the head of the Reserve Bank of New Zealand has been talking about bond buying-programs directly from the government as a money-printing measure.
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