Market News and Charts for June 16, 2020
Hey traders! Below are the latest forex chart updates for Tuesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The South African rand is back on the defensive against the US dollar. The safe-haven appeal of the US dollar isn’t the only force that’s pushing the trading pair. The recent news that the South African authorities are looking to ease coronavirus loans amidst the alarming low payouts faced by the country. The rand is placed on its back foot after a report about South African banks looking for ways to boost the coronavirus loan scheme by at least SAR200 billion, which is about %11.58 billion. According to sources close to the matter, possible measures and amendments are already being discussed by the authorities. Among the possible actions is encouraging banks in the country to ease their respective lending conditions. And to top that off, the South African rand is also facing global headwinds. The loss of risk appetite is making it difficult for the rand to defend its gains. The currency is seen collapsing as safe-haven assets continue to steal investors’ attention.
Despite the massive popularity and demand for safe-haven assets such as the greenback in trading sessions, the USDRUB trading pair remains on its downward trajectory. The pair should crash to its resistance level this month as the Russian ruble gets support from the oil loans that it acquired. Looking at the fundamentals, it appears that the crude market is fairly stable considering that investors are worried about the possibility of a second wave of coronavirus infections. Just yesterday, Russian Deputy Finance Minister Alexey Sazanov credited the taxation system of the country, saying that it will be receiving about $10 billion funds from domestic oil companies this 2020. Major economies around the globe have all taken intense beatings, and oil-giant Russia is no exemption to that. The earlier plunge of oil prices and the lockdown has bruised Moscow’s economy which has seen a significant reduction in its budget revenues from its principal exports.
Projections about Switzerland’s worst economic slump in decades has caused the downfall of the Swiss franc. Looking at the charts, it’s seen that the trading pair has initially picked up a good downward momentum as the US dollar was previously deemed overbought. However, this time, the US dollar is back on the offense and is on track to force the pair higher towards its resistance area. Just recently, the Swiss government said that the country will suffer its worst economic slump this 202 thanks to the unforgiving damages brought by the coronavirus pandemic. The rising number of unemployed citizens and the alarming weak outputs from the country will help dig a deeper economic slump for the beautiful European nation. Switzerland’s State Secretariat for Economic Affairs, otherwise known as SECO, said that the country’s gross domestic product (GDP) will most likely fall by about 6.2% this year, recording its worst reading since 1975.
The Czech koruna is in deep waters against the US dollar. Although it’s evident that in today’s trading, the US dollar to Czech koruna exchange rate is seen falling. Ultimately, the pair will head upwards once again as the safe-haven appeal of the US dollar should shine through the market. Investors are concerned about the escalating geopolitical tension between Russia and the Czech Republic. The intensifying tension could slow down the Czech economy’s recovery. Just yesterday, a Kremlin Spokesperson said that Moscow will not tolerate the “hostile” moves made by Prague. And according to the Russian Foreign Ministry, the Czech Republic’s actions will be responded by appropriate measures. Adding that Moscow would take things accounted as it drafts its policy regarding the European nation. On the other hand, the US dollar is seeing support from the bleak economic update from the United States Federal Reserve.
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