Market News and Charts for August 10, 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!
As the US dollar makes a comeback, bullish investors of the exchange rate are delighted. Prices are bound to climb up towards their resistance level this month of August as investors closely wait for bond yields. Over the past few months, the greenback’s safe-haven appeal has failed to keep investors coming due to the number of factors bombarding the currency. Looking at it, bulls are still struggling to secure bigger gains as the concerns remain at bay. Meanwhile, the number of cases in Sweden is starting to slow down, but experts say that the rate is still higher compared to other countries. The country has been closely monitored by critics for its decision to leave its economy wide open despite the life-threatening virus. At first, the number of deaths and infections have climbed up as expected, however, the number of daily deaths and infections have declined from its peak but are still poor compared to its neighbors in the region.
The South African rand has been in deep waters against the US dollar. This is despite the strong bearish sentiment for the US dollar in the past couple of weeks. The US dollar to South African rand exchange rate should rally towards its resistance level, hitting price ranges last seen in May. The rand’s downfall is somehow linked to the Turkish lira which has been dragging the emerging market currencies lower and lower, sparking a risk-averse turn. The said risk aversion has been pressuring the South African rand, denying if from any benefit from ongoing signs of the COVID-19 is starting to lose momentum in the country. Moreover, it was just recently reported that the South African government is expected to discuss some of the country’s lockdown regulations as the number of cases there continue to rally. There are now more than 1 million coronavirus cases in Africa, and more than half of them are from South Africa, making it a hotspot in the region.
As of writing, it’s seen that the US dollar to Russian ruble exchange rate has been trading neutrally as both sides struggle to gain any ground. The USDRUB trading pair has been mostly bullish despite the headwinds faced by the greenback. Prices are now widely projected to climb up higher to their resistance level this month as the bleak economic data pumped out by the Russian economy weighs on the ruble. Unfortunately for bears, there aren’t any expected short-term supports for it, living the Russian ruble to rely on medium and long-term fundamentals. Currently, there are over 160 coronavirus vaccine candidates being developed by various companies and institutes around the world. Russia has its own coronavirus vaccine candidate which is an adenovirus-based viral vector machine. If it manages to produce it ahead of other drugmakers, it could make a big difference for the long-term strength of the Russian ruble and economy.
After plunging in July, the USDCHF trading pair faces correction as the greenback starts to pick up momentum. Investors are closely eyeing the fundamentals that could further help the US dollar to climb back up against the Swiss franc. Prices are bound to ultimately make their way back towards their resistance level this August. The market is heavily focusing on the fiscal stimulus in the United States and the geopolitical tensions between the US and China ahead of the trade negotiations this August 15. Finally, the US dollar index is seen recovering after an intense losing streak in July. The jobs data reported last Friday calmed down the nerves of investors about the US labor market. The US dollar is looking to restore its glow and the recent decision of the US President Donald Trump on Saturday to partially restore enhanced unemployment payments to millions of jobless citizens in America could further help its cause.
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