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!
NZD/JPY
The pair will bounce back from its support line, sending the pair higher towards its previous high. New Zealand became the face of coronavirus success after it was able to contain the virus within in a month. Lockdown period in the country began on March 25 after a level 4 alert for the pandemic was raised. The partial lockdown started on April 27 and on June 07, the country lifted all restrictions relating to COVID-19. After dismantling the virus, the country’s finance minister said that New Zealand is on the path towards a V-shaped recovery. Expectations for the first quarter of 2020 was a contraction of 15%. This, however, will be matched by a 14% recovery in Q3 ending in September. This news has caused a surge in the price of the NZD against other currencies. Japan, on the other hand, ended its national emergency back on May 25. However, figures for its reports were still stagnant. Unemployment rate is expected to hit 3.1% for June.
USD/HKD
The pair will break down from a major support line, sending the pair lower towards its all-time low. Despite the Federal Reserve retaining its current benchmark interest rate of 0.25% in yesterday’s report, the US dollar is still bound to fall. The catalysts were the country’s gross domestic product (GDP) and initial jobless claims reports today, July 30. The largest economy in the world is expected to publish 34.1% contraction for the second quarter of 2020. If the expectations came close to the actual figure, this will be America’s largest quarterly drop in history. Meanwhile, analysts are expecting the increase from last week’s initial jobless claims report to continue for this week. Aside from that, the increasing tension between the United States and China will also take a toll on the country’s economic performance in the coming months. Trade war’s casualty, Hong Kong, gave a forecast on its Q2 figure at 0.1% decline.
USD/SGD
The pair will bounce back from its current support line, sending the pair higher towards a key resistance line. Expectations for the US reports today, July 30, were all negative. However, Singapore’s published reports for this week spelled more trouble in the country’s status as a financial center. On Tuesday, July 28, the city state released its data for the unemployment rate. The figure for the report jumped from 2.4% to 2.9%. This was followed by another disappointing result yesterday, July 29. Singapore’s bank lending dropped by $4.9 billion, from $685.3 billion to $680.4 billion. Singapore earlier published its Q2 GDP report which started the overall skepticism in the country’s economic health. Two (2) weeks ago, it posted a 12.6% contraction on its Q2 GDP, a 41.2% annualized decline from the same quarter in the prior year. Also, the US-China tension could take a toll on the economy of other Asian countries like Singapore.
EUR/DKK
The pair will continue its downward movement in the coming weeks. Brussels unleashed data from several reports this week. On Tuesday, July 28, one of Europe’s most hard-hit countries of COVID-19 released its Q2 unemployment rate. Figure came in at 15.33%. On the following day, it posted its retail sales report with the figure of -4.7%. Today, July 30, Germany, the EU’s economic powerhouse, released key reports for the country’s economic health. Germany’s economy contracted in the Q2 by -10.1%. Its unemployment rate was stagnant at 6.4%. Meanwhile, the EU’s rate for unemployment was recorded at 7.8%. These reports suggest the bettering economic performance of the European Union. Despite this, however, the optimistic outlook for Denmark’s economy will outshine all positive data from the EU. The European Economic Forecast report shows Denmark being the second-best economy in the European Union for the year 2020.
