Market News and Charts for March 26, 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 Turkish lira is struggling to defend itself against the euro but in recent sessions, its seen slightly rebounding. The reason for the rebound was the recently rolled out stimulus measures to cushion the blow of COVID-19 to the Turkish economy. The number of coronavirus cases in Turkey recently saw a big spike, recording more than 500 new cases just yesterday. The massive surges raise the number of infections to about 2,433 as of writing. While the death toll in Turkey reaches 59. Turkish Health Minister Fahrenttin Koca said that among the 5,000 plus tests that were conducted, it was found that about 561 people were infected by the deadly virus. While in Europe, leaders from the region ditches austerity to help fight the pandemic with full force in terms of cash. A French official said that the countries in Europe are failing to communicate through the response measures, this leaves space for vulnerability for the single currency.
Investors of the British pound are waiting for the interest rate decision of the Bank of England later today. The announcement is one of the most anticipated news today as the decision could be affected by the news that Prince Charles himself was infected by the deadly coronavirus. The British government warned local businesses and banks from profiteering from the massive upcoming stimulus and said that it should pass on the benefits of the stimulus to their consumers or lenders. Meanwhile, the Australian dollar is weakening courtesy of the quantitative easing program of the Reserve Bank of Australia. Looking at the pair, it’s highly doubted whether the GBPAUD would break its resistance due to the upcoming rate cut decision from the British central bank. And considering that the efforts of the RBA appear to be working, it could revive the confidence of investors of the Australian dollar.
The Canadian dollar may have this in the bag. Despite the gradual rebound of the British pound in recent sessions, it’s expected to drop in the forex market due to the upcoming interest rate decision of the Bank of England. Later this Thursday, the British central bank will announce the adjustments or the verdict for its official interest rates. Technically, this would not be the first cut from the bank this year. Due to the virus, the BoE has already unleashed two rate cuts this month, and the schedule announcement later is expected to dig its rates even deeper. Meanwhile, in Canada, the government has passed a CA$107 billion bill to act as an emergency aid and serve as an economic stimulus to help Canadians that were affected by the virus. According to official data from the government, the number of jobless Canadians reached almost a million just last week, which is about 5% of the total workforce of the country.
The Danish krone recently reached its weekly highs against the greenback as it takes advantage of the weakness of its opponent. Apparently, the unprecedented stimulus from the United States Federal Reserve sparked the risk appetite for other currencies including the Danish krone as its to restore stability in the financial market. However, it’s unknown whether bears could break past the support levels especially considering the strain that’s faced by the Hungarian economy. Just in, the European Commission, under the European Union State, has approved a bill that rules about 10 million Danish krone as a scheme that would partially ease the losses of self-employed citizens. Denmark reportedly notified the European Commission prior about its intentions regarding the said 10 million Danish krone as its self-employed people are the ones most affected by the unfortunate impact of the virus in the country.
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