Market News and Charts for June 25, 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 New Zealand dollar is still projected to floor the British pound in the coming days despite the broader weakness it faces in the whole global market. The pair’s prices are widely on track to go down to their support level by the first few days of July, reaching levels last seen in late August and early September 2019. Although the New Zealand dollar momentarily tumbles after the decision of the Reserve Bank of New Zealand to hold its interest rates broke out. With that being said, the relatively low interest rates are still not enough to help the British pound to get back up on its feet against the strong antipodean currency. Looking at it, both the Australian dollar and the British pound have thrived successfully in the previous days, taking down most major currencies despite the risk sentiment going on and off in the global market. Bearish investors shrugged off the positivity from the recent improvements shown by the United Kingdom’s economy.
The poor risk sentiment in the global market causes the Canadian dollar to shrink in recent sessions. Add to that is the fact that the Bank of Canada governor gave grim outlook projection for the country’s economy, the loonie faces serious struggles. However, the pair appears to make minimal upward movements, suggesting that the pair still has a huge potential for a downside in the coming days ahead. The main reason why the British pound is projected to go down is the unwavering concerns of investors for a Brexit deal. It was just recently reported that Brussels has finally set to cave on some major Brexit negotiation talk issues. At first glance, the news should boost the pound sterling, but it didn’t. this is because of the insistence of the European Union’s chief negotiator that their team would not budge to agree to any deals that would ultimately compromise the bloc’s integrity as a single market, signaling no-deal Brexit concerns.
Last week, the Chinese yuan notably strengthened against other major currencies in the forex market, especially against the beloved US dollar. However, the fluctuations in the risk sentiment in the global market is bound to boost the safe-haven appeal of the US dollar. The agonizingly prolonged tension between the United States and mainland China should help propel the US dollar to Chinese yuan exchange rate’s prices towards their resistance level. Just recently, it was reported that Robert O/Brien, US President Trump’s national security adviser, compared Chinese President Xi Jinping to Josef Stalin, a known Soviet Dictator. The comment escalated the concerns for the trade deal between the two economic giants. The rather aggressive speech from O’Brien reportedly lambasted the Chinese leader. Trump’s national security adviser then added that the Chinese government wants to remake the world based on its image.
After prices saw a sharp plummet late last month to early June, bulls have been working hard to buoy the pair once again. The dominant safe-haven appeal of the US dollar should help push the trading higher towards its resistance by the first few days of the coming month. Investors seek to correct the pair’s prices after the sharp fall. However, the Danish krone is putting up a tough fight against the US dollar, and the fluctuation in the risk mood of the market is helping it do so. Lifting the lockdown restrictions in Denmark has greatly helped to refuel the recovery of its economy. The European nation saw a massive spike in sales for clothing, shows, and other retail sales goods last month, seeing new records on a month-over-month basis. The Danish chief economist at the chamber told the press that the people are highly encouraged to increase their consumption now to boost the recovering economy and save it from the devastating economic slump.
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