Market News and Charts for July 23, 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 political shackles that have been weighing down to beloved euro are now gone thanks to the new EU stimulus package. This gives bulls a great opportunity to move forward in a tight ascending channel, propping prices towards their resistance level in the sessions. All is looking considerably great for the bulls as there is one word to describe the sterling now – weak. The British pound continues to face serious Brexit woes. Earlier this week, it was reported that EU fishermen are demanding the same access to UK waters which was followed by the stubborn stance of EU leaders. And now, reports say that British Prime Minister Boris Johnson has refused to negotiate the fishing rights. Investors are holding tight and are really concerned about a no-deal Brexit which could be detrimental for the sterling’s strength. Sources close to the matter said the United Kingdom isn’t looking like it would budge, so it’s now in the hands of the European Union.
The euro now has a clear shot to snatch strong gains against the Swiss franc. The news about a coronavirus vaccine has slowed down the safe-haven drive of the Swiss franc and it has strengthened the confidence of euro bulls. And aside from that, the European Union’s latest stimulus package for the bloc’s suffering economies gives the euro the power it needs. The euro to Swiss franc trading pair is widely projected to go up towards its resistance level in the coming days. A bullish fate for the exchange rate might not be bad as in the past the Swiss National Bank has expressed its concerns with the rallying franc and has even interfered to stop the currency from continuously appreciating. As for the SNB, earlier this week, it was reported that the central bank’s chairman, Thomas Jordan, said that it’s unlikely that it will change the course of its famous ultra-loose monetary policy amidst the ongoing coronavirus pandemic and currency appreciation threat.
As for the matchup of the two safe-haven powerhouses, it’s evident that the US dollar is on the defensive. The Swiss franc continues to power through against the US dollar, and prices are expected to crash towards its support level soon. It’s quite clear that the pair is stuck on a descending channel, and over the last few weeks, the trading pair has been seen falling sharply. This is the exact concern of the SNB. A week ago, its chief told the press that the bank won’t change its extremely loose monetary policy because if so, the Swiss franc would further gain against the US dollar. And on the other hand, the once-powerful buck is seen struggling to pull itself up because of the concerns of investors about the uncontrollable surge of coronavirus cases in the US. And the fact that there are a lot of anti-vaccine and anti-mask protestors in the US makes it harder for traders to convince themselves that everything is under control.
The greenback is doomed to crash towards its support level against the Czech koruna. The trading pair is very bearish as the koruna takes advantage of the broader weakness faced by the US dollar. An analyst describes the US dollar’s current performance as “hanging by a thread” as the currency gets battered from the growing number of COVID-19 cases. The US dollar has been steadily declining against the Czech koruna, and other assets, in the recent weeks after a steep climb and volatile run during the start of the pandemic. Investors are turning sour for the precious greenback as they weigh the recovery prospects of the US against other rivals, mainly the European Union. The eurozone is seeing an improvement in terms of handling the coronavirus, and it’s the complete opposite in the US. And this positive notion for the bloc is driving assets in the region, including the Czech koruna. Not to mention that Prague has also finally reopened its economy.
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