Market News and Charts for June 05, 2020

Hey traders! Below are the latest forex chart updates for Friday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!

GBP/AUD

The Australian dollar continues to rise against the British pound despite the adversities thrown at its way. Bullish investors of the pair are looking to push the pair to its support levels by halfway mark of the month. It appears that the ongoing political tension between Washington and China is brushed off by the Australian dollar. Aside from that, the news about its first ever recession didn’t stop it from gaining further against the British pound. Investors of the pair are focused on the intensifying trade tension between the two biggest economies, which greatly influences the direction of the pair. Just recently, a US diplomat has said that China has been asserting more power and has been flexing its muscles while other countries around the world continue to scramble to continue the coronavirus outbreaks in their country. The new national security law for Hong Kong has marked one of its most aggressive moves this year.

GBPNZD

Just like its fellow antipodean currency, the New Zealand dollar remains evidently dominant against the British pound. The exchange rate is registering its fifth consecutive decline this Friday, meaning that the whole week was rather unpleasant for the sterling. And unfortunately for it, it is still widely projected to drop down to its support levels in the coming sessions. The impressive handling of New Zealand to the coronavirus outbreak there has saved the country’s economy from a deep economic slump which in turn has also helped the currency. Another factor that’s supporting the New Zealand dollar is the recent expansion of the European Central Bank’s stimulus, which further heightened the risk sensitivity in the market. And on the other hand, the United Kingdom’s currency fails to defend itself against the kiwi because of the unfortunate results in the country’s consumer confidence report. The report reached it lowest level since the global financial crisis.

GBP/CAD

Thanks to the slump in oil prices, the Canadian dollar shifts on the defensive against the British pound. Bullish investors of the pair are looking to take advantage of the momentum and buoy the price to its resistance level. The slump in Canada’s exports have greatly taken a toll on the strength of the Canadian loonie. Investors are wondering if the pair continue to climb past its resistance despite the ongoing concerns for Brexit. As of Friday, there have been little progress in the recent talks between the United Kingdom and the European Union. And just recently, it was also reported that the Bank of England is already preparing a hard Brexit plan in case there is no deal between the two groups. The United Kingdom’s government leaders have until the end of this month to negotiate a transition period for the highly anticipated yet controversial divorce.

USD/DKK

The US dollar is obviously losing its gains against the Danish krone. And it’s very evident that bearish investors want more and is pushing the pair even lower than the previous fall on March. The US dollar to Danish krone exchange rate should drop to its support level this first half of June. The greenback is said to be affected by the situation in Hong Kong. Over the recent weeks, the tension between the two behemoths have escalated to the next level. The alarming turmoil between the United States and mainland China has taken a toll in the prosperity and strength of the US dollar. And as for the Danish krone, investors continue to gather strength from the reopening of the region’s economies. Currencies from Europe have been thriving against the US dollar, mainly the Danish krone. Fortunately for Denmark, it is one of the economies that has suffered less economic damages from the lockdowns which gives the krone strength to rally.