Hey traders! Below are the latest forex chart updates for Thursday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
USD/HUF
The pair will fail to break out from a downtrend channel resistance line, sending the pair lower towards its previous low. The central bank of Hungary retained its benchmark interest rate of 0.60%. This was following the 15 basis points cut last month from 0.75%. The Nemzeti Bank’s decision came a day after the Hungarian government said it is planning to add more stimulus in the economy starting next month. Aside from that, Finance Minister Mihaly Varga clarified that its growing economic partnership with China was in line with the country’s foreign policy. Since the pandemic began, Hungary imported around 93 million masks from China. It also purchased 40 million PPEs, 800,000 doses of medications, and 15,000 ventilators. Meanwhile, the US’s relationship with China continues to deteriorate with the trade issue and militarization in the South China Sea. Investors should also keep an eye on US reports for employment this week.
USD/MXN
The pair will break down from a major support line, sending the pair lower towards the next support line. Mexico’s unemployment rate is projected to increase to 4.10% in today’s report, August 27, for the month of April. However, investors are expected to shrug off this negative data as they focused on the positive results from other reports. In yesterday’s report, the country’s GDP for the second quarter of the fiscal year contracted by -17.1%. This was Mexico’s largest economic decline to date. Still, this is nothing compared to the projected 32.5% decline for America’s Q2 GDP. Aside from this, the Trade Balance report is expected to post positive figure following June’s $5.547 billion record. As for Mexico’s neighbor, America, expectations for its GDP and initial jobless claims report were both not looking good. Furthermore, investors are worried that the largest economy might not be able to recover soon with soaring COVID-19 cases.
USD/NOK
The pair will fail to break out from a downtrend channel resistance line and break down from a major support line. This week, both the United States and Norway will post their reports for employment and economic growth. On Tuesday, Norway already published its second quarter GDP report at -5.1%. This was the country’s largest economic decline since reporting began in 1978. Meanwhile, the US economy is projected to contract by 32.5% in today’s report for the country’s second quarter GDP. Also, Norway posted its unemployment report yesterday, August 26. Figure came in at 5.2% compared to expectations of 4.7% and previous record of 4.6%. The US, on the other hand, will publish its much-awaited initial jobless claims report for the week. Despite having lower projections of 1,000K, investors were still disappointed that the potential difference between this week and the previous week’s report is only 6K.
USD/PLN
The pair will continue to move lower in the following days towards its May 2018 low. Poland’s unemployment rate remained flat at 6.1% for the month of July. Over the course of the pandemic, the rate only rose by 0.5%, which represents only a small portion of the country’s working class. Its Q2 2020 showed an economic contraction of 8.9%. However, analysts believe that the strong labor market will bring the robust economic recovery needed to restart one of Europe’s fastest growing economies. Meanwhile, the economic outlook with the largest economy in the world was gloomy. The rising number of coronavirus cases, the ongoing trade tension with China, the trillion dollars worth of stimulus, the rising unemployment, and the looming election were the major factors for the bearish sentiment. The US is due to report its initial jobless claims and Q2 GDP today, August 27. However, the projections for these reports will only add to investors pessimism.
