Market News and Charts for June 11, 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 continue to move lower in the following days towards its 02 January 2020 price level. Norway is bound to recover earlier and faster than other countries in the European region. This was due to its immediate response after the coronavirus outbreak became pandemic. Norway was among the first countries to shut their border and implement social distancing rules. It is also among the first to restore business operations following its successful combat against COVID-19. Analysts believe that the 11.4% contraction in March and April was the peak of Norway’s economic downturn. Also, a major part of the decline was attributed to the slump of crude oil prices. But now that the oil markets are recovering along with Norway’s economy, a robust recovery is expected. On the other hand, the single currency led by Germany continues to suffer on the weak economic figures and activity in Berlin and Paris.
The pair will break down from a key support line, sending the pair lower towards a major support line. The single currency will continue to decline in coming sessions due to disappointing results from Germany and the European Union. The EU’s largest economy reported a sharp decline on its import, export and trade balance. Imports shrink by 16.5% while exports declined by 24.0%. Trade balance, on the other hand, was only $3.2 billion $19 billion prior to the coronavirus pandemic. However, there are some outperformers in the European Union. Hungary has been one of the fastest growing economies in the region in 2019. However, the coronavirus pandemic causes global recession and the OECD group now expects Hungary to contract by 8.0% this 2020. Despite this, Hungary’s finance minister reassured investors that the country is on the right path towards recovery. Mihály Varga expects Hungary to grow by 4.8% in 2021.
The pair will continue to move higher in the following days after a strong bounce back from a key support line. Brussels is considering opening the European Union’s external borders on July 01. The move is expected to propel the economy of the largest trading bloc after the slow down brought by the “Great Lockdown”. Aside from this, the EU Commission already allotted $826.0 billion for its economic aid. Meanwhile in Russia, the coronavirus economic impact is yet to be felt. Russia’s Q1 GDP growth slowed down to 1.6%. However, a grimmer Q2 result is expected by analysts at -9.5%. Furthermore, the third and fourth quarter figures are also expected to be in negative territory at 6.3% and 5.2%, respectively. Russia will also suffer from the increased oil production cut in the coming months. The OPEC+ punished Moscow’s failure to live up to its promise to decrease oil production back in February, which resulted in oil prices trading below zero.
The pair will fail to break out from a major resistance line, sending the pair lower towards a major support line. Poland is leading the European Union and the rest of the European region towards economic recovery. Brussels is proposing to the EU member states to open their external borders starting July 01. However, Poland will be opening its borders first on Saturday, June 13. This is expected to advance the Polish zloty in coming sessions against the single currency. Aside from that, major reports also pointed to Poland being the most resilient economy among the EU member states. Poland has been the EU’s fastest growing economy for several years and resuming business operations earlier than most European countries will help Warsaw to recover faster. Aside from Poland, the members of the V4 nations from Eastern Europe are also among the countries leading the EU’s economic growth in the post-pandemic world.
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