Market News and Charts for June 12, 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!
The pair will fail to breakout from a downtrend channel resistance line, sending the pair lower towards its previous low. Sweden recorded coronavirus infections more than the total cases reported from other Nordic countries. This was due to its decision to keep its economy and borders open and to develop herd immunity among its citizens. Meanwhile, the Swedish government’s refusal to lock down the country resulted in its GDP staying in green territory. Sweden’s first quarter GDP YoY saw growth at 0.4%. Analysts are expecting Stockholm to report negative gross domestic product results for Q2 as the lockdown in the EU infected its businesses. The EU was the second epicenter of the coronavirus pandemic after China. Most of its member states already lifted several restrictions to recover revenue losses during the lockdown. However, a robust recovery is not expected as the EU’s economy is already struggling prior to the pandemic.
The pair will bounce back from a major support line, sending the pair higher towards a key resistance line. Czech Republic had its biggest GDP decline for the decade on Q1 2020 where it posted -3.3% growth. The OECD expects Czechia to further decline in the coming quarters to become the fifth most infected country by the coronavirus pandemic in Europe. Forecast for the full year was at -9.6% on optimistic view and -13.2% if the country’s COVID-19 cases had its second wave. Meanwhile, a 7.7% economic recovery in 2021 is expected by analysts. The four spots above Prague in the list of most infected countries were the current and former members of the European Union. The UK was at the top spot followed by Italy, Spain, and France. The 2nd, 3rd, and 4th spots were members of the single currency bloc. However, the intervention of the EU’s economic powerhouse, Germany, is expected to keep the single currency afloat.
The pair will break out from a major resistance line, sending the pair higher towards another major resistance line. The United States had its lowest jobless claims since the coronavirus outbreak. Unemployment in the country for the previous week climbed by only 1.5K compared to the first week of March at 3.3K and the first week of April at 6.6K. Aside from that, crude oil inventories were stabilizing at 5.7 million barrels per day (bpd). As the US shows signs of economic recovery, the European Union is struggling with its post-coronavirus world. The largest trading bloc is divided when it comes to a unified plan on the budget that must be spent as economic aid. Imports and exports between member states were still at the rock bottom. Hungary’s trade balance hit its lowest level in more than 15 years. The European Commission already proposed lifting external borders of its members on July 01 to restart the largest trading bloc’s economy.
The pair will break out from a key support line, sending the pair higher towards a major downtrend resistance line. Mexico’s Finance Minister Arturo Herrera gave a dire warning after he said that Mexico’s economy is likely to shrink by 17% in April. In Q1 2020, the country’s economy contracted by 1.2% and analysts are expecting a grimmer outlook for Q2. Another factor that might further derail the country’s economic recovery was its president. Andrés Manuel López Obrador refused to spend during the coronavirus pandemic which limits the country’s economic activity. This, in turn, is expected to further drag the already ailing Mexico economy. The Russia-Saudi oil price war in March also led to the decline of crude oil prices. Although Mexico is not part of the group, the country is still a significant player in the market. The collapse of oil triggered a production cut from OPEC and its allies.
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