Market News and Charts for July 16, 2020
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!
The New Zealand dollar is on the defensive against the Australian dollar. Although yesterday the Aussie slightly slipped against the kiwi after it failed to immediately break through the current ranges. Prices are forecasted to climb higher as the tides are still in favor of bullish investors. The pair should hit its resistance this July as bears struggle to defend themselves. Experts believe that a pullback isn’t due anytime soon hence bulls continue to thrive. The Australian dollar is one of the most appealing risk and trade-linked currencies amidst the coronavirus pandemic. However, it faces problems recently due to China’s rifts against other countries and the rising number of COVID-19 cases in the antipodean currency. And as for the kiwi, it was also seen strengthen in the previous session, however, its momentum is slowing down now. Bears are weighed down by the mixed sentiments of investors from the recently released Chinese data.
The beloved single currency is strengthening against the New Zealand dollar despite the fact that the antipodean currency is seen advancing through the foreign exchange market this Thursday. The euro to New Zealand dollar trading pair’s prices are widely projected to climb up after being dragged by bearish investors. The pair should advance towards its resistance level in the latter half of the month. Moreover, the market is patiently waiting for updates and the outcome of the scheduled online meeting of European Central Bank monetary policymakers. As the bloc’s economies steadily stabilize, some of the ECB policymakers have reportedly suggested the Pandemic Emergency Purchase Programme, which was previously boosted from $1.52 trillion to about $1.35 trillion euros, might not be spent after all. As for the New Zealand dollar, it failed to gather momentum from the recently released Chinese economic data.
Bears are greatly disappointed as it appeared that they had enough strength and momentum to force the euro to Brazilian real exchange rate t recover during the latter part of the first half of the year. Unfortunately for the Brazilian real, it continues to get weaker against the single currency. Bearish investors are unable to hold on and harness strength from the rather impressive performance of Brazil’s stock market which rallied yesterday. Investors are greatly weighing on the economic prospects surrounding the currencies. First, looking at the euro, the bloc’s economies are recovering, and it has reached the point where some of ECB’s policymakers even start considering not spending the bank’s massive stimulus package. And as for the Brazilian real, investors are awfully afraid for the fate of the Latin American powerhouse as its highly controversial right-wing leader tests positive for the deadly coronavirus for the second time now.
The British pound to Brazilian real exchange rate has been trading slowly in the previous sessions. Despite that, the trading pair is predicted to climb down towards its support levels in the coming days. The British pound is affected by the soft start of the global equity markets, putting pressure on the already Brexit-weighed currency. And on the other hand, the Brazilian real faces a serious roadblock against other currencies such as the euro, but its fate is slightly better against the British pound. This casts a tremendous gloomy shadow over Britain’s outlook. Just recently, it was reported that Germany suggested that the EU’s negotiation team would miss Boris Johnson’s designated deadline to deliver the highly anticipated outline of the divorce agreement. As of today, Brexit deal negotiations are continued in Brussels and last night, the two top negotiators reportedly took time to overcome their differences to settle the agreement once and for all.
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