Market News and Charts for March 16, 2020

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

EUR/HUF

The pair failed to break out from an uptrend channel resistance line, sending it lower towards the channel’s support line. The World Health Organization (WHO) announced that Europe is now the center of coronavirus pandemic, with Italy at its heart. Italy is the European Union’s third-largest economy, while it placed 8th in the global arena. As of March 15, the country has recorded a total of 1,809 cases. This number is higher by 368 cases from March 14. The new positive cases yesterday were the highest single-day increase in COVID-19 positive cases. Also, the number of coronavirus death-related in the country rose to 1,800. Italy is currently in lockdown, and analysts expect the country’s economy to suffer. They further added that Italy, France, and Germany would enter a recession in Q1. On the other hand, Hungary reported its first coronavirus death yesterday. The country’s total number of cases was 32.

EUR/RUB 

The par will continue its rally towards its previous high. European Central Bank (ECB) President Christine Lagarde defied critics after she held the country’s benchmark interest rate. The central bank retains its zero percent interest rate last March 12, explaining that it has a liquidity plan. Analysts around the world are expecting central banks to race towards the bottom amid the rising number of coronavirus. Recently, the WHO announced that the center of coronavirus cases is now in Europe. The report came as the region posted an above-average increase in the number of coronavirus cases. Russia, on the other hand, has locked its borders with neighboring countries. Analysts are worried about the economic impact it has on Russia. For the past years, Russia’s economy has struggled, and the COVID-19 would further impact the economy. In addition to this, the oil price war between Russia and OPEC would trigger a recession in the country.

EUR/PLN

The pair will fail to break out from a resistance line, sending it lower towards a support line. Poland will benefit from the assistance package introduced by European Commission President Ursula von der Leyen. According to EU Commission Director-General for Economic Affair Maarten Verwey, the European Union and the eurozone is likely to enter a recession. The €37.3 billion EU initiative fund will go directly to sectors hit by the coronavirus. Poland will be receiving the most substantial share of €7.4 billion. However, many analysts questioned that move by one of the EU’s largest institutions. Among all EU member states affected by the coronavirus, Italy took the hit the most. However, the country will only receive a €2.3 billion share from the fund. Moreover, European Central Bank (ECB) President Christine Lagarde said she would not help virus affected countries like Italy in the debt market. Today, she apologized for her botch statement.

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EUR/SEK

The pair will move lower towards a critical support line after it failed to break out from its resistance line. Sweden gained more ammunition to counter coronavirus after its decision to end its 5-year negative interest rate experiment. On December 2019, Sweden increased its benchmark interest rate by 25 basis points to zero percent. Norway’s central bank, on the other hand, slashed 50 basis points of its benchmark interest rate this March. The rate cut was the country’s response to the economic threat posed by the COVID-19. Other Scandinavian countries are following suit and introducing their economic policies. The world’s oldest central bank, the Riksbank, lent $51 billion to the country’s commercial banks to counter the virus. Also, the Swedish government tasked banks operating in the country to continue their lending activities to support Sweden’s economy. Meanwhile, the eurozone is struggling to contain the coronavirus.