Market News and Charts for June 02, 2020
Hey traders! Below are the latest forex chart updates for Tuesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The pair is expected to break out from a major resistance line, sending the pair higher towards a key resistance line. The United Kingdom’s economy is expected to rebound in the second quarter of fiscal 2020. The UK’s Manufacturing Purchasing Managers Index (PMI) report on June 01 advanced by 8.2 points from its previous record. Britain’s Composite and Services PMI reports scheduled today, June 03, is also expected to jump. Aside from this, government officials began their discussion on reopening the economy of the fifth largest economy in the world. These, in turn, will strengthen the British pound in the coming sessions. Meanwhile, the safe-haven appeal of the Swiss franc is expected to suffer from the grim outlook on the country’s GDP QoQ report this Wednesday. Switzerland is expected to drop by -2.0%, its biggest decline in two (2) decades. This is expected to take a toll on the country’s first and second GDP growth for 2020.
The pair is set for a rebound in the coming days. The Australian dollar experienced some strength in the previous weeks as the country successfully contained the deadly virus. However, the success came at an expense. The country was among the first to close its borders and shut down its businesses. This, in turn, resulted in revenue losses and a decline in the country’s GDP growth for the first quarter of 2020. The country’s gross domestic product went down by -0.3%, which might eventually result in a recession if Australia continues to disappoint on Q2. Investors are expected to dump AUD today as the country’s retail sales report is expected to plummet by 17.9%. Meanwhile, the European Union is slowly recovering from the economic turmoil brought by the virus. Both Germany and France’s Purchasing Managers Index (PMI) report showed positive recovery yesterday at 36.6 and 40.6, respectively, from 34.5 and 31.5 points.
The pair will continue its rally towards a major resistance line. The United States is facing triple threats with the coronavirus, US-China tension, and civil unrest due to the killing of a black man. This is expected to shake the country’s politics and economy. Due to coronavirus, the US government and its central bank injected trillions of dollars into its economy. However, this has prevented companies filing for bankruptcy as the number of cases continue to rise. In addition to this, the US’s relationship with China is hitting rock bottom once again after the US accused China of creating the deadly virus to use as a bioweapon. Not only did the US face uncertainty but also with its people. Several states are experiencing problems with the continued protest and looting due to the death of George Floyd. On the other hand, the European Union is continuously recovering from the losses it incurred during the lockdown due to the pandemic.
The pair will fail to break out from a short-term uptrend resistance line. Japan is on the path towards economic recovery in the coming weeks. After lifting its national emergency, Tokyo broke records with its $1.1 trillion fiscal stimulus to restart the country’s economy. A champion in containing the coronavirus pandemic and economy, the Japanese yen is expected to thrive against the US dollar. Currently, the US has the largest cases of COVID-19 in the world. Despite releasing trillions of dollars, the country still received numerous Chapter 11 bankruptcy, which shows the stimulus failing to save businesses. Aside from this, the US is entangled in a bitter relationship with China, a bad time since the country was still not able to recover from the recent slump. The slowdown in the United States and China is expected to give the third largest economy in the world a chance to regain back its strength in the coming quarters.
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