Market News and Charts for April 27, 2020
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!
Bears are clinging on to their gains as bulls work hard to recover some of the major losses. As of today, the Japanese yen is underwhelmed by the recent decision of the Bank of Japan, although it’s seen gaining against other currencies, it’s no match for the British pound this Monday. Earlier today, the BOJ lifted the limit on its government bond purchasing power and also increased corporate debt buying in order to support companies struck by the coronavirus. The decision failed to force the pair to dive again today as it was already widely expected. Traders of the Japanese yen are now shifting their focus on the upcoming Fed meeting minutes due this week for further guidance. As for the British pound, investors are hoping for good news as the UK Prime Minister Boris Johnson is expected to announce plans to reopen the economy gradually. This will further reinforce the sterling and allow it to overpower the safe-haven appeal of the Japanese yen.
The Canadian dollar remains relatively bearish as the price of oil in the commodity market goes down again. Both crude oil and Brent oil contracts are seen in the negative territories this Monday, suggesting a downward track for the Canadian dollar. Bearish investors are taking advantage of the imbalanced crude market to gain against the Canadian dollar, preventing bulls from recovering in the sessions. Despite the underwhelming reception of investors on the decision of the Bank of Japan, the Japanese yen’s safe-haven appeal is attracting investors as the Canadian dollar remains highly volatile and vulnerable to news about the crude market. Earlier today, the Bank of Japan announced that it is expanding its monetary stimulus to ease the pressure on businesses and companies affected by the coronavirus pandemic. The more should have weakened the Japanese yen, however, the weakness wasn’t enough to cause the pair to rally.
The British pound continues to gain against the Swiss franc and is expected to propel the pair upwards to its resistance level. Bearish investors of the GBPCHF pair are waiting for further guidance once the British Prime Minister announces the plan to reactivate the economy. Earlier this month, UK Prime Minister Boris Johnson has finally been discharged from the hospital and has recovered from the coronavirus. Johnson is expected to unveil the plans soon to the public. However, it’s advised that bulls remain cautious as a spokesperson from Downing Street warns that if the United Kingdom lifts its lockdown restrictions too early, a second wave of coronavirus cases may come and erase the significant progress made already. As for the Swiss franc, last week, the SNB posted historic losses thanks to the devastating pandemic. The news allowed bullish investors to regain their footing and reclaim the momentum.
The pair is expected to crash back to its support level as the Australian dollar looks for redemption against the single currency. Bearish investors of the pair are working hard to recover their major losses from late February and March. The Australian dollar is projected to maintain its direction and pull the pair back down. However, investors should be cautious as risk aversion could hit the Aussie hard. Over the past few days, Australia has released a string of unprecedented initial estimates for its economic activity in March. The Australian government aims to provide a clear objective statistic of the country’s economy amidst the unforgiving pandemic. The numbers provided by the authorities has helped buoy the Australian dollar against the euro. And as for the euro, the unresolved rift and the continuous failure of European leaders to come up with a consensus measure has weakened it against most major currencies in trading sessions.
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