Market News and Charts for May 25, 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/PLN

The Polish zloty strengthens against a number of major currencies, including the beloved single currency of the eurozone bloc. The sentiment is in favor of bearish investors; however, the EUR/PLN pair’s decline has significantly slowed down this Monday. Investors are kicking off the week on a rather cautious tone as the global market focuses on the boiling trade tension between the two biggest economies. The pair should still reach its support levels as the zloty remains determined to recover its major losses against the euro. Earlier this month, the Polish zloty has even been dubbed as undervalued thanks to the rate cuts unleashed by the Polish central bank. Other reports say that experts believe that it was unnecessary as the Polish economy is one of the least damaged economies in the region. Local reports also say that Poland’s resilient economy is already recovering from the coronavirus pandemic.

EUR/SEK

The Swedish krone is benefiting from the growing optimism in Europe and in the global market, forcing the euro on the defensive. However, as of today, the pair has steadied thanks to the once again rising geopolitical tension between Washington and Beijing which is further intensified by global reports about the anti-Beijing protests in Hong Kong. Also, the gains of the Swedish krona are evidently limited thanks to the worries about the ability of the country to handle the economic slump caused by the coronavirus lockdowns. An official from the Swedish Trade Federation, Hans Tjernstrom Carraro, has raised concerns as industries are still significantly loosing to the lockdown’s impact. Still, the euro to Swedish krona exchange rate is widely believed to drop to its support level soon as the country’s export-reliant economy continues to benefit from the easing global trade flows as economies begin to reopen gradually.

EUR/CZK

The euro to Czech koruna exchange rate is now on a rising wedge pattern since the middle part of April. The pair is on track to climb to its resistance in the earlier part of June. The Czech economy struggles to get back up amidst the pandemic and now the government has started to once again issue working visas to Ukrainians as it needs more people in its labor force to help the economy get back up. The Czech Republic is also on the course to gradually permit local bars and restaurants to open again. However, as the German economy spirals into a recession, the eurozone’s single currency could weaken, could prevent the pair from getting past its resistance level. Earlier today, Berlin reported that its economy collapsed from -0.1% to about -2.2% on a quarterly basis thanks to the coronavirus pandemic. The fall of the bloc’s economic powerhouse could be very detrimental to the single currency’s strength as it’s the sharpest decline since the financial crisis.

USD/HUF

The US dollar gains against the Hungarian forint as the tensions in Hong Kong rapidly intensify in the past few days. The trade tension between Washington and Beijing has continued to boost the safe-haven appeal of the US dollar, helping it remain on positive areas in the foreign exchange market. The persistence of Beijing to gain more power over Hong Kong has raised more concerns for the relationship between the two biggest economies in the world. Bulls are looking to take the momentum and force the pair higher towards its resistance line by the end of the month or perhaps by the first few days of June. However, the Hungarian forint could make it a difficult journey for the greenback as it tries to defend. Hungary’s economy is gradually reopening and along with it are its borders with Serbia for local citizens. But aside from that, no further fundamentals can assure that the Hungarian forint could continue its recovery.