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Market News and Charts for May 06, 2020

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

EUR/RUB

The euro slumps following the recent news about a court ruling that challenges the participation of Germany, one of the biggest economies in the eurozone, in the unified stimulus program for the block. Actually, looking at the fundamentals, it appears that the odds are in favor of bearish investors as oil prices bounce back and investors continue to worry about the gloomy sentiment regarding the global recovery. The Russian ruble is projected to strengthen soon as prices of crude in the commodity market gains yet again, with the WTI crude oil futures climbing to beyond the $25 mark this Wednesday. Take note that the Russian ruble is a commodity currency and its direction is correlated with the stability of the crude market. Moreover, the Russian economy proves its robustness as it records stronger than projected figures from the previous reports. And later this week, investors also waiting for further guidance from scheduled reports from Russia.

Market News, Market News and Charts for May 06, 2020

EUR/PLN

The broad weakness of the euro in the foreign exchange market today was seemingly brushed off by bullish investors. The news about the Polish zloty and the “unnecessary” rate cut from the Polish central bank has weakened the Polish zloty, preventing bearish investors from regaining their footing. The euro to Polish zloty trading pair will remain widely bullish thanks to the negativity regarding the zloty. According to a local report, an expert said that the previous rate cuts from the Polish central bank contributed to the strain felt by the zloty, which is now greatly undervalued against the Single currency. Apparently, the central bank has already slashed its official interest rates twice this year thanks to the pandemic. As of writing, the interest rates of Poland currently stand at 0.50%. And later today, the central bank is scheduled to unveil its interest rates decision which is widely expected to be left unmoved this May.

Market News, Market News and Charts for May 06, 2020

EUR/SEK

Investors are choosing the Swedish krona instead of the euro thus giving strength to bears to force the pair lower. In March, the euro seemed unstoppable as it continuously secures gains against the Swedish krona and other currencies in the region in the previous sessions. However, things are now turning around for the beloved single currency as it heads down in the market. Perhaps the bond-buying program that was recently announced by the European Central Bank is draining the strength of bullish investors. Forex investors are betting on the “pro-cyclical” currency as it has no great exposure to oil directions to make a strong rebound against the euro. Moreover, more issues regarding the block and the stimulus program are holding back the euro in sessions, preventing it from defending against the Swedish krone. This time, the recent decision of a German court calls the European Central Bank to justify its massive bond-buying program.

Market News, Market News and Charts for May 06, 2020

EUR/CZK

Thanks to the better than projected results recently produced by the Czech economy, the bearish fate of the euro to the Czech koruna exchange rate has been sealed. Apparently, the odds are actually against the euro this time as the European Central Bank’s bond-buying program is asked by a German court to be justified. The highest German court calls give the bank three months to give the justification and if failed to do so, the ECB will lose the participation of the Bundesbank in of its primary stimulus schemes. This decision is critical as the eurozone’s main bank will risk losing the support of one of the biggest economies in the region. The European Central Bank is widely expected to give the justification in the given period. Although, the news has already caused the precious common currency to tumble in the current trading session.

Market News, Market News and Charts for May 06, 2020

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