Market News and Charts for August 25, 2020
Hey traders! Below are the latest forex chart updates for Tuesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The bullish trend for the US dollar to Brazilian real exchange rate was reignited back in late July and is expected to remain strong even until earlier September. Looking at it, the risk appetite in the market should have already helped the cause of the Brazilian real. However, despite the regenerating risk appetite, it remains vulnerable against most major currencies, not just the US dollar. Perhaps the massive number of coronavirus cases in Brazil has sparked a great concern for the country’s currencies. Not only that, but the Brazilian president himself has been under intense scrutiny for months and is now the center of another controversy. Jair Bolsonaro is facing online criticism after he unsuccessfully tried to snuff out some questions about his family’s financial conditions even going as far as saying that he wants to punch a journalist’s face. The controversy involves the president’s wife, Michelle Bolsonaro, and Fabrício Queiroz over corruption.
The Romanian leu somehow lost its grip on the US dollar in recent sessions. Fortunately for bearish investors, the pair is projected to go down once again as the greenback lacks enough fundamentals to back it up. Prices of the exchange rate should hit its support levels by the first half of September, hitting ranges last seen in September 2018. The main factor that’s currently affecting the direction of the pair is the anticipation of the market for Hungary’s central bank meeting. See, currencies in the region are somehow linked together and the turbulence faced by the forint is somehow making an impact on the leu. As for the US dollar, most analysts believe that it will continue to slide lower against most major currencies. Earlier this year, the safe-haven currency had an impressive run when it benefitted from the initial fears for the coronavirus. However, those concerns reflected the buck too when the number of cases in the United States dramatically jumped in recent months.
Over the recent weeks, the Norwegian krone has been moving steadily against the euro and both bears and bulls have struggled to dominate the pair. However, based on the strength of the commodity market, it appears that the rally of oil prices could push the tides in favor of the Norwegian krone. Just yesterday, the prices of crude in the market rose as oil and gas companies in the Gulf of Mexico temporarily halt half of their production yesterday as two tropical storms pose a threat to their operations. The news was well-received by bullish investors of crude and has helped the Norwegian krone to force prices to turn red yesterday. Meanwhile, the euro may also receive some support after it was just reported that the United States and the European Union finally reached a tariff agreement. The said agreement is very crucial for the bloc as tariffs and trade tensions with the US could hinder a speedy recovery for its struggling economy.
Bullish investors of the euro to Hungarian forint trading pair are eyeing high ranges for prices. The Hungarian forint is affected by the anticipation of investors about the scheduled meeting of the Hungarian National Bank later this Tuesday. Prices are clearly on track to reach their resistance level in the first few days of September. Moreover, the Hungarian National Bank is expected to leave its official interest rates unmoved at exactly 0.60% this August. However, it’s unknown as to whether the euro could hold the pair on bullish conditions for a long time considering that many experts are fearing a pullback. The strength of the single currency is greatly affected by the US dollar’s direction now and the risk sentiment in the market. Despite the trade tensions and the continuous spread of the virus, the risk appetite is determined to find its footing. However, that is not certain as anything could kill that momentum anytime soon.