Market News and Charts for June 10, 2020

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

EUR/BRL

The pair will continue to fall in the coming sessions towards a major support line. Brazil is now the epicenter of the coronavirus pandemic. As of writing, the country has 742,000 cases with 38,500 deaths. Despite this, Brazil President Jair Bolsonaro rejected calls to lock Brazil and close businesses. The country has now its third health minister since the coronavirus outbreak after previous ministers recommended to lockdown the country. However, this could be a competitive advantage for Brazil as its economy continues to operate despite the global lockdown. On the other hand, the EU member states began lifting several restrictions. However, the economic loss during the lockdown has been haunting them down. Germany injected $1 trillion into its economy but its import and export reports were still in negative. Its trade balance was only at $3.2 billion. Imports and exports fell by 16.5% and 24.00%, respectively.

GBP/BRL

The pair will break down from the “Pitchfork Pattern” support line. The United Kingdom is expected to suffer bigger economic decline compared to the EU’s economic powerhouses Germany and France. For the first quarter of 2020, Britain already suffered a staggering 5.8% despite the lockdown only covering a sixth of the entire Q1. The worse-than-expected result was also attributed to the UK’s withdrawal from the European Union. Despite analysts being optimistic on the British economy, reports still show the country’s economy slowing down after its historical divorce with the largest trading bloc. The withdrawal from the EU and lockdown due to the coronavirus pandemic will send the UK GDP growth to its lowest level. Meanwhile, Brazil will continue to thrive in the coming sessions with President Bolsonaro’s refusal to put the country in a lockdown. The economic prosperity in Brazil will be at the expense of the country’s health.

USD/BRL

The pair will continue its steep decline in the following days towards an uptrend support line. Brazil stole the United States’ title as the epicenter of the coronavirus pandemic this month with 742K cases and 38K deaths. Brazil is currently the second most infected country by the virus after the US. However, Brasilia beats Washington to have the biggest percentage rise in COVID-19 cases. Despite this, Brazil’s businesses remain open defying calls by experts to put the entire country under a lockdown. On the other hand, the United States is mixed when it comes to taking the pandemic on their priorities. Some states are still in a lockdown while some remain open. The US government and the Federal Reserve already injected a total of $6 trillion dollars in the economy. The high unemployment rate in the country, low business operation and high supply of the US dollar are expected to take a toll in America’s economy and its currency.

USD/RON

The pair broke down from a major support line, sending the pair lower towards another major support line. Analysts are optimistic with the Romanian economy following the statement by Finance Minister Florin Citu. FM Citu said economic recovery in Romania will be visible by July to August prompting a buying spree on the Romanian leu. Despite lifting several restrictions by EU member states in May, concerns were still mounting that recovery might be steep. Meanwhile, the US will have a hard time to recover from the pandemic with the increasing tension with China. The US’ investigators found out that China intentionally created the virus in Wuhan lab to be used as a bioweapon against the country’s enemies. This prompted US President Donald Trump to call out China’s practices. In addition to this, a bipartisan bill was passed in the US Congress to end America’s investment to Chinese firms.