Market News and Charts for April 29, 2020
Hey traders! Below are the latest forex chart updates for Wednesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The single currency of Europe is managing to hold itself up against the Canadian dollar today following the news from the European Central Bank. Despite that, it’s still widely projected that the Canadian dollar will bring the pair downwards towards its resistance level in the coming sessions. See, the Canadian dollar is still technically vulnerable as the crude market remains extremely bearish but that doesn’t stop EURCAD bulls from taking the pair lower. Moreover, the ECB’s repose to the coronavirus pandemic has calmed the markets in the region while setting on a path that has the potential to test the mission of the bank to stabilize prices. However, with the governments of European countries struggling to agree on a unified measure or joint fiscal actions, it will be a true test to the leadership of the former IMF boss Christine Lagarde. And as for the Canadian dollar, the US dollar sell off in the broader market has caused it to strengthen.
Despite the projections of negative interest rates from the Reserve Bank of New Zealand later this year, the New Zealand dollar remains determined to gain against the Japanese yen. See New Zealand has successfully managed to handle the coronavirus outbreak in the country, meaning that the impact of the virus isn’t as great as to other countries. That also means that the safe-haven appeal of the Japanese yen won’t be able to attract more worried investors. Aside from that, the recently released reports from Japan’s economy has slowed down the Japanese yen against the New Zealand dollar, leaving an opening for bullish investors to force the pair to its resistance level in the coming trading. Another factor that adds to the strength of the New Zealand dollar is the country’s export figures hitting records just last month which also contributes to the better than expected trade results in the country in the same month.
The US dollar to Hong Kong dollar is currently trading at its lowest levels since January 2016 as the Asian currency remains unstoppable. Despite that, bullish investors of the pair are looking to propel the pair back to its resistance in the coming sessions. However, it will be a tough climb to the resistance area as the HKD is one of the best year-to-date players in the forex market despite the unending economic hardships faced by the economy. Looking at it, HKD has endured the anti-Beijing protests last year, was hit by the ripples of the trade war, and is now pressured by the ongoing pandemic. The hurdles don’t faze the traders of the HKD, giving bullish investors a huge headache. The main source of strength of the HKD is the Hong Kong Monetary Authority as it maintains the strength of the pegged currency. Just last week, the HKMA unleashed another support package, and bulls are waiting for an opportunity to recover once the bank fails to deliver.
The Singaporean dollar is gaining against the US dollar and projections are saying that the USDSGD pair will eventually crash to its support. The recent sell off of the US dollar in the foreign exchange market also isn’t helping the case of bullish investors. The pair is bound to crash to its support area by the first week of May thanks to the perseverance of bears. However, some believe that the pair will only bounce off its support levels and use the momentum to reach new highs. It appears that the Singaporean dollar is in trouble as the country’s economy is currently facing one of the greatest recessions in its history yet thanks to the unforgiving coronavirus. If a deeper than expected recession does happen, the safe-haven appeal of the US dollar will help bullish investors erase the recovery made by bears. According to the Monetary Authority of Singapore, the 2020 growth prospects of the country has taken a drastic turn for the worst this year.
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