Market News and Charts for August 26, 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 Russian ruble remains vulnerable against the euro and prices of the exchange rate are projected to climb towards their resistance level very soon. The political tensions in Belarus are the main fundamental that’s affecting the confidence of the Russian ruble and its investors. Just recently, it was reported that two opposition members were jailed. Olga Kovalkova and Sergei Dylevski are both known members of the National Co-ordination Council. Reports say that they were set up by the exiled opposition leader Svetlana Tikhanovskaya following Belarus’ widely discredited presidential poll. Alexander Lukashenko has claimed a fresh term in the office even after 26 years in power. However, both the United States and the European Union rejected the August 9 vote, saying that it’s neither free nor fair. Moreover, the bloc’s single currency is also facing some volatility as its strength is linked to the greenback’s fluctuating strength.
The Polish zloty fails to gain support from the optimism in the region’s stock market. Prices of the euro to Polish zloty trading pair are projected to rally and hit their resistance level by the first half of September. Vaccine hopes have greatly improved the optimism in the global markets. However, the increasing number of coronavirus infections in Poland is helping the cause of bullish investors. Just recently, it was reported that the number of confirmed cases in Poland jumped to more than 63,000 according to the Polish Ministry of Health. However, compared to other countries around the World, Poland’s outbreak isn’t that big. On the other hand, the slight improvements in the US-China trade talks supported the cause of the euro. Just recently, it was reported that the two feuding sides finally held a phone call which boosted the optimism and risk sentiment in the market. Aside from that, the positive economic data from the euro is also helping it to remain strong.
Compared to other currencies in the region, the Swedish krona has had more chances against the euro in the previous sessions. However, the tides are somehow shifting, and the common currency is expected to redeem itself against Swedish krona. The strength of the single currency is mainly to the risk appetite reignited by the recent progress made by Washington and Beijing. Meanwhile, it’s widely known that Sweden took a rather different approach with its coronavirus management, a move that was criticized by most experts around the globe. But just recently, it was reported that Sweden’s coronavirus strategist was fired from his post after emails were leaked to the public. Reports said that the messages show that the country’s chief epidemiologist appeared to ask questions whether a higher death rate among the older people might be acceptable if it would help the country achieve herd immunity, the news sparked outrage among the people.
Despite the optimism for the single currency in the global foreign exchange market, the Czech koruna is widely projected to stand up stronger in the coming weeks. In fact, experts believe that the trading pair would hit its support level before the first half of September ends. A recent study found that the confidence of the business sector in the Czech Republic is slightly improving, strengthening the Czech koruna along the way. However, it was also found that consumers are still worried about their financial situation amidst the pandemic. But it’s worth noting that the Czech Republic’s unemployment rate hasn’t jumped substantially in the last few months, suggesting that perhaps the pandemic’s detrimental ripples to the working class are finally easing. Other reports like households’ concerns are still high but economists say that it’s slightly going down, another sign of improvement from the previous months which were incredibly harsher.
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