Market News and Charts for May 26, 2020
Hey traders! Below are the latest forex chart updates for Tuesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
USD/MXN
The stabilization of the crude market is making it rather difficult for the US dollar to defend itself in the sessions. The US dollar to Mexican peso exchange rate is projected to crash to its support level by the first few days of June. Since the middle half of the month, the exchange rate has continuously declined as the Mexican peso seek redemption. The Mexican peso is expected to remain dominant given the deteriorating growth prospects in the global market and the currency’s correlation to external news. Mexico’s exposure to the United States makes it a primary beneficiary to the possible containment of the virus in the coming quarter. Meanwhile, Mexico reported a massive trade deficit of more than $3 billion last month in both its exports and imports. The lockdown has greatly dented the trade industry of the country, but the Mexican peso remains determined, brushing off the negativity from the country’s economic activities.
USD/NOK
Bears are on track to gradually force the pair to its support level. See, the Norwegian krone is running on two main fundamentals; first, the status of the crude market because it’s a crude exporting country. And second is the relative value and performance of other European currencies, not just the euro. Other currencies from the region are also making their recoveries against the greenback. Also, considering that the crude market has been relatively stable thanks to the massive supply cuts, the Norwegian krone is greatly benefitting. A huge percentage of Norway’s exports are crude oil and other refined products, so, the health of the crude market is a huge factor for the currency. However, compared to other currencies in the region, the Norwegian krone is one of the least productive thanks to the same factors. Aside from that, the rate cut unleashed by the Norwegian central bank earlier this month has slowed down the recovery of bearish investors.
USD/PLN
The broad weakness of the US dollar today has given an opening for the Polish zloty to advance sharply. The US dollar to Polish zloty trading pair is widely believed to go down to its support levels soon as the US dollar remains on the defensive against most currencies in the market. Earlier this month, it’s evident that the Polish zloty struggled to recover thanks to the rate cuts unleashed by the Polish central bank. Luckily, it has gained momentum in the middle half of the month. In its latest monetary policy meeting, Poland’s central bank opted to leave its official rates unmoved and is waiting to see the initial effects of the earlier rate cuts to the Polish economy. Meanwhile, as domestic markets continue to get higher, the US dollar is starting to weaken in sessions. According to experts, bulls are still waiting for an opportunity to continue their dominance but as of the moment, it looks like bears will have the upper hand in the market.
USD/ILS
The Israeli shekel is putting a tough fight against the US dollar as bears work harder to prevent bulls from getting away. The pair has been gradually declining since early April, and bears are hoping to keep the momentum to reach the pair’s support level. The shekel is supported by the improvements in the country’s stock exchanges. It was reported that Israel’s stock market is highly supported by the real estate, communication, and technology sectors in which companies’ stocks are gaining higher. Looking at the country, experts say that Israel’s immediate response to the coronavirus may have worked, and now, the country is starting to once again allow businesses to open and schools to start teaching again. The rate of new infections in the country has significantly slowed down according to local experts, but there are still heavy concerns that it might be returning to normal too soon and that the country needs to remain cautious.
