Market News and Charts for August 21, 2020
Hey traders! Below are the latest forex chart updates for Friday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The New Zealand dollar looks like it’s in deep trouble against the British pound. The exchange rate is projected to climb up towards its resistance level as bears face major hurdles. See, since the coronavirus outbreak began, New Zealand has been one of the model countries that handled the crisis successfully in the first half of the year. However, the country now faces a fresh outbreak of new cases and US President Donald Trump has already commented about it. However, just recently, New Zealand Prime Minister Jacinda Ardern clapped back at Trump’s comment saying that it’s not about how many cases are there but how the nation manages them. Since August 11, the antipodean country saw 87 new confirmed cases after 102 days without new infections. This news weakened the New Zealand dollar, allowing the also volatile British pound to take control. As of writing, the sterling is still riding on Brexit deal hopes but is also held back by concerns.
The latest decision of the Turkish central bank to leave its rates unmoved August has helped the Turkish lira hold its ground against the US dollar. But unfortunately, the bullish sentiment for the pair’s price is strong and isn’t expected to die down anytime soon. Prices are bound to head towards their resistance soon. All eyes are on Turkey’s president after he promised to announce something that would be revolutionary for the country this Friday. President Recep Tayyip Erdogan spoke at the opening of a solar panel manufacturing facility at the country’s capital said he will deliver “good news” that would be an “axis shift” for Turkey. It is still unknown whether it will have an impact on the struggling Turkish lira and or if it could help it in the medium term. As for the US dollar, it’s seen struggling to gain grounds thanks to the downbeat jobless claims report. Despite that, its weakness isn’t enough to allow bears to regain their footing in the trading sessions.
The trade war between the United States and China has been affecting the trading pair’s direction since it broke out. And now that tensions have dramatically escalated, the downside risk for the exchange rate continues. Prices of the US dollar to Chinese yuan pair are expected to go down towards their support level by the first half of the month. Yesterday, it was reported that the Chinese commerce ministry said that the United States and China have finally agreed to have their negotiations in the coming days to look at the status and the progress of the first phase of the deal. Earlier this year, the two economic powerhouses reached a deal which was considered a big milestone for both since the tension began. The two agreed on big targets for Beijing to significantly boost its purchases of farm goods from the United States. Investors are now waiting for further details on whether both sides would start negotiating for the second phase.
It appears that the US dollar’s attempt to recover is short-lived. The trading pair is projected to go down even lower in the coming weeks as the US dollar remains vulnerable against most currencies in Europe. Bears have been on a winning streak, but prices are now seen steady as the greenback fights hard to prevent another loss. Perhaps the main reason why the Danish krone has been rallying well is the performance of the country’s stock market. Earlier this week, an analyst reportedly said that Denmark’s equity market is one of the top-performing markets in the globe, which is coupled by the fact that the region is now doing well, a strong krone is justified. As for the US dollar, bullish investors are seen doing their best, but the fundamentals are holding it back from rallying. One factor that’s affecting the US dollar is the upcoming presidential elections in the United States, for which the outcome would have a massive impact on its direction.
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