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!
GBP/NZD
The British pound is bound to strengthen as the British government and the Bank of England unleash more stimulus to support the United Kingdom’s economy. However, the question of whether the British pound could force the pair beyond its resistance still stands. As seen in the news, London is currently falling down. It’s leaders and members of the royal family have caught the devastating virus. And perhaps one of the main reasons why the British pound remains solid is the recent decision of the Bank of England to leave its official interest rates unchanged. The move comes right after the BoE unleashes two emergency rate cuts earlier this month. Such drastic measures are taken to mitigate the impact of the pandemic. Meanwhile, the New Zealand dollar is also in deep trouble as a recent research assessment in the country says that majority or around 89% of the total population there could be affected by the virus.
USD/CNH
Due to the number of new cases of COVID-19 in the United States and the whopping growth of unemployed Americans, the US dollar is buckling in the forex market. The Chinese dollar is expected to take advantage of the greenback’s weakness and force the pair downward to its resistance. It appears that the tables have finally turned, now the US is facing some serious trouble as the pandemic paralyzes the American economy. Meanwhile, in mainland China, the country is closing its border to most foreign flights amidst the fear of contracting the virus once again. If that would happen, it would be the second unfortunate outbreak in the country. In an official statement issued yesterday, Beijing said that it will suspend the entry of foreign nationals in the country as of March 28. Foreign nationals who wish to enter China again must apply for a new visa to their local Chinese embassies or consulate before entering the mainland.
USD/TRY
Investors of the US dollar are shaking as the country gets hit by a massive jolt, reporting a massive spike in coronavirus cases. This leaves room for the Turkish lira to overpower it in the market. However, it’s worth noting that Turkey is also feeling the intense pressure s the number of cases there is also seen jumping. It’s just reported that the death toll in the country jumped to approximately 3,629 according to the Turkish Health Ministry late yesterday. And just like in the United States, the Turkish government is also highly encouraging its people to stay inside their homes and avoid public places or large gatherings. However, the Turkish president has not yet announced a lockdown. Just recently, the Turkish Industry and Business Association urged President Erdogan to impose enforce more measures to contain the virus and support the economy. The group represents Turkey’s biggest companies.
EUR/NZD
Unlike the British pound, the euro is expected to immediately crumble against the New Zealand dollar. Looking at it, the whole region is severely affected by the virus. According to results, the leaders of the bloc have disagreed on how the group would finance the crisis. Yesterday, eurozone leaders failed to reach an agreement about additional borrowing measures as a response to the virus. The coronabonds that’s been the talk of the town is highly opposed by some members of the bloc. Nine countries including Spain, Portugal, France, Ireland, ad Italy appealed for common debt issuance to ensure the stability of the region’s economy. However, some members, including the Netherlands, strongly opposed the idea coronabonds. And as for the kiwi, two days since the lockdown in New Zealand, it has already started to counter the euro. And despite the QE in New Zealand, the currency is bound to strengthen as the risk appetite returns.
