Market News and Charts for July 20, 2020
Hey traders! Below are the latest forex chart updates for Monday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The pair will continue to move higher in the following days towards its previous high. The European Union is starting to recover from the recent slump brought by the coronavirus pandemic. Consumer Price Index (CPI) went up from 0.1% in May to 0.3% in June. Analysts are expecting this figure to climb in the coming months as Europeans go back to their normal lives with the easing of several lockdown restrictions. On the other hand, Russia’s economy collapsed due to COVID-19. The country’s monthly GDP YoY report is still in the negative territory at -6.4%. This spells trouble for Russia’s upcoming second quarter GDP report. In addition to this, unemployment is at its highest in 8 years at 6.2%. A major catalyst for the pair’s performance in the coming months was the 5G network battle. Finland’s Nokia and Sweden’s Ericsson were establishing their presence in Southeast Asia with their Singapore deal.
The pair will bounce back from an uptrend channel support line. Poland’s Consumer Price Index (CPI) report shows no sign of stopping even during the global lockdown. The country’s report shows its biggest growth of 4.1% since May 2002. However, the opposite is true for Poland’s Producer Price Index report (PPI). In today’s report, the Polish government posted a -0.8% decline. This suggests that the growth was only in the output of the supply chain. This difference between CPI and PPI was fully reflected on Poland’s Employment Growth YoY. On Friday’s report, employment growth was recorded at -3.3%, the biggest since reporting began in 2006. On the other hand, the eurozone is expected to have an inclusive recovery in the second quarter of 2020. The aid budget by the European Union is allotted specifically with countries who are hardly hit by the coronavirus pandemic. This, in turn, will help the single currency to retain its strength.
The pair will continue to move lower in the following days towards a major support line. Sweden gained the attention of the world after it refused to close its borders and businesses to contain the virus. Instead, it relied on herd immunity to counter the virus. However, four (4) months since the virus became pandemic, the country still wasn’t spared from weak growth forecasts. The country’s economic growth is expected to decline by 5.3% this year, more than its neighbor Denmark at 5.2%. However, many analysts are still hopeful that Sweden will be able to dodge this decline. For its Q1 2020 GDP growth, Sweden expanded by 0.1% compared to the decline with most of the European economies. The de facto leaders of the European Union, Germany and France, declined by 2.2% and 5.3%, respectively. This suggests that Sweden might experience a more modest decline in its GDP growth for the second and upcoming quarters this 2020.
The pair will bounce back from an uptrend channel support line, sending the pair higher towards a key resistance line. The Czech opposition parties are urging Prime Minister Andrej Babis to back the EU’s recovery plan for the entire bloc. Babis has been at odds with the leaders of the European Union and has for years built the Visegrad Group’s influence across the bloc. He argued that the right-wing leaders of the EU were discriminating against the eastern Europe when it came to funding and development. He is now pushing the country to be self reliant. Recently, the lower house of the Czech Parliament approved a central state budget deficit of $21.21 billion of 9.9% of the country’s GDP. This was due to plans by the government to further utilize its resources to help businesses cope up with the pandemic. However, the recent report that Czech’s car production for 2020 will drop by 20% might force the country to cooperate wIth the EU
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