Market News and Charts for May 20, 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!
The pair will continue to move lower in the following days towards a key support line. Economic activity in the United Kingdom is expected to plunge following the extended lockdown in the country. Yesterday, Britain’s Labour Productivity report went down by 1.1% from the positive 0.3% record prior. In addition to this, unemployment is expected to spike during the span of the lockdown as businesses face continuous decline in their revenues. The slowdown in economic activity is evident on the UK Consumer Price Index (CPI) which was published earlier today. The change in the price of consumer goods only went up by 0.8% which is half of the 1.5% record last month. Today, UK Prime Minister Boris Johnson outlined his plan on easing the lockdown restrictions. On the other hand, New Zealand began lifting its lockdown on Monday. NZ is expected to be resilient against the coronavirus following its successful containment of the virus.
The pair will reverse back toward its previous low after it failed to break out from a major resistance line. China is going head to head against the United States in the global arena. The US accused China of intervening on the World Health Organizations (WHO) decision on the coronavirus pandemic. Aside from that, the US is threatening that it will impose additional tariffs on Chinese products despite the trade deal agreed by both parties in December 2019. China, on the other hand, warned that it will invalidate all agreements previously made between Washington and Beijing if the US pursues the rocky path. On key reports, China was seen recovering from the recent economic slump in the country brought by the pandemic. Meanwhile, the US is currently struggling to contain the pandemic. The country is now home to the largest cases of coronavirus and deaths. Adding to the pessimism was the recent decline in crude oil prices.
The pair will bounce back from its current support line towards its previous high. The Turkish lira is under intense pressure as investors fear that new policy in the country about foreign exchange might prevent its economy from growing. The new policy granted previous banks banned from trading lira against other currencies to once again make profit from these activities. However, the policy also states that manipulation and deception to dump the Turkish currency will be punishable under the country’s law. This, in turn, will make the policy a government tool for further control. Turkey has been heavily criticized in the previous years for its authoritarian rule, especially by President Recep Tayyip Erdogan. Erdogan was known for bending the country’s constitution to further extend his control and leadership in the country. Among the most criticized actions by the president was to intervene on its central bank, a separate institution from the government.
The pair will break down from a major support line, sending the pair lower towards a key support line. Most of the EU member states already began easing their restrictions as some countries successfully contained the virus. However, analysts are worried about the post-economic situation of the European Union. Prior to the coronavirus pandemic, the EU is already struggling with its economy. The virus further highlights the economic struggle of Germany and France, EU’s economic powerhouses, as they entered recession. For the first quarter of 2020, Germany sank -2.2& while France declined the most in a quarter since recording of the data began in 1948. New Zealand, on the other hand, lifted its lockdown effective on Monday, May 18. New Zealand has among the lowest COVID-19 related deaths in the world, making its citizens and investors feel confident on returning to business.
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