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!
GBP/NZD
The British pound is looking to extend its strong rally against a number of major currencies, including the New Zealand dollar. Bullish traders of the trading pair are looking to extend their gains after the phenomenal run of the sterling last week. The strength of the sterling comes from a combination of commendable economic activities, the recovering global stock market, and the hopes of a Brexit deal by October. A factor that should be greatly considered is the possibility of MP’s blocking a post-Brexit trade deal with the European Union. Aside from the EU, the United Kingdom is also pursuing trade deals with the United States and Japan. As for the New Zealand dollar, it’s on the defensive and its performance will heavily rely on external factors and it’s affected by the prevailing global market sentiment of investors. If a piece of unexpected positive news comes up, it could help the New Zealand dollar prevent the pound from getting big gains.
EUR/NZD
The euro is steadily advancing against the New Zealand dollar. The strength of the beloved single currency is giving positive signals for European stocks which would ultimately fuel hopes that the bloc would recover fast. The euro to New Zealand dollar exchange rate will continue to see an upside as the kiwi gets pressured from the upcoming interest rate decision of the Reserve Bank of New Zealand. Bullish investors are also gathering strength from factory industries across the region. Positive results recorded by the bloc’s economies is helping the euro to rally. Although some experts believe that there is more for the single currency. Economists believe that the unexpected improvement could mean that the eurozone can recover faster than prior projections. On the other hand, the kiwi is affected by the concerns of investors on the upcoming interest rate decision of the RNBZ. Leaving rates unmoved could weaken the kiwi’s defense.
USD/CNH
The Chinese yuan continues to strengthen against the US dollar. The currency is taking advantage of the weakening US dollar. Prices are expected to go down towards their support level and experts say that it’s one of the most solid displays of strength from the yuan. As of writing, the US dollar is seen effectively defending itself other currencies. However, against the Chinese yuan, that is not the case. Its safe haven appeal of the greenback isn’t working against the yuan mainly because China’s economy is stabilizing already and is recovering well compared to the United States. Looking at it, the buck is bombarded by a ton of problems – political concerns, economic troubles, and the uncontrollable increase of coronavirus cases in the United States. Experts are warning that the US dollar’s weakness now may a serious sign of danger for its outlook. Reports say that the events could lead the all-powerful greenback to, unfortunately, erode from within.
USD/TRY
The Turkish lira is incredibly weak, to the point where even the buckling US dollar can even push it on the defensive. The trading pair is widely projected to continue climbing up towards its resistance level, reaching ranges last seen back in early May. Investors from Turkey are extremely concerned as a handful of roadblocks face the currency – the country’s deteriorating foreign exchange reserves, the rapidly increasing foreign-denominated debt, interventions from the Turkish central bank, and the fears of possible sanctions from the European Union. Bearish investors have fallen to their knees despite the aggressive decision of Turkish state banks to sell dollars to help the lira. Just last week alone, Turkish state banks sold over $ 2 billion. Meanwhile, the pandemic has caused the foreign exchange reserves of the nation to dramatically plummet which means that further depreciation for the Turkish lira is now inevitable.
