Market News and Charts for June 04, 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 pair will bounce back from a major support line towards a major resistance line. Hong Kong’s economy is suffering from the continued tension between the United States and China. While the world faces the coronavirus pandemic, China introduced a bill that will end HK’s status as a SAR. This means that China will have a tighter grip over Hong Kong’s law. This, in turn, prompted the US to draft a bipartisan bill that will choke Chinese companies of the American dollar. For the past four (4) consecutive quarters, Hong Kong’s economy was in contraction. If the US decided to end its partnership with Hong Kong, this might lead to more years of economic contraction. Another threat to Hong Kong’s economy was from its former colonial master, the United Kingdom. Foreign Secretary Dominic Raab warned that Britain might accept HK citizens into its territory if Chinese authoritarian rule continues.
The pair will continue its steep decline, sending the pair lower towards a major support line. Singapore is looking to reopen 80% of its economy this month as the country was battered with the coronavirus pandemic. Singapore’s key reports showed mixed results last month which signals that outlook might be getting better for Asia’s tiger economy. In April, Singapore started lifting several restrictions to encourage economic activity in the country. This was followed by several stimulus to keep its economy afloat. Now that cases of the deadly virus continue to decrease, economies around the world are looking to restart their economy. Singapore revised its economic outlook for 2020 for the third time to 4.0% to 7.0% contraction this year. However, the country is looking to beat this forecast by introducing its fourth round of fiscal stimulus at $23.2 billion. The US, on the other hand, is expected to enter recession in Q2 2020.
The pair will fail to break out from a major resistance line, sending the pair lower towards its previous low. Denmark closed its border ahead of other European countries and now it is lifting restrictions ahead of everyone else. Following its decision to reopen its economy, Denmark is expected to see a robust gain in the coming quarters. Other members of the eurozone are also lifting their lockdown. However, the German economy is expected to drag everyone in the group. As the de facto leader of the European Union and the eurozone, Germany’s economy has a significant contribution to the bloc’s economic strength. However, not that Germany is experiencing an economic contraction, others will feel the same. Germany posted its third-biggest increase in employment in its history at 238,000 yesterday, following its largest drop a month ago at 373,000. Germany is also in recession after it posted -2.2% GDP growth for the first quarter of 2020.
The pair will continue to move higher in the following days towards its previous high. Despite weakness in the European Union, the single currency is expected to thrive against the Turkish lira in coming sessions. This was amid the economic crisis lingering around Turkey’s economy. Analysts are worried about the country’s short-term debt. Cumulatively, Turkey is only capable of paying half of its loans due in the next 12 months. President Recep Tayyip Erdogan also rejected calls to ask funding from the International Monetary Fund (IMF). The refusal to expand its credit from financial institutions could further drag the lira to its lowest level in history. Another news that could prompt investors to sell the lira was Turkey’s tension with Greece. Turkey is applying to become a member of the European Union and has been receiving funds from it. Greece, a member of the EU, could reject Turkey’s membership.
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