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/ZAR
The pair will break down from a major support line, sending the pair lower towards a key support line. South Africa’s recent reports were mixed with a lower trade surplus and a high Manufacturing PMI report. Trade balance report on Friday, October 30, showed the country’s surplus for September adding $33.51 billion, lower than the prior month’s $38.70 billion. However, the manufacturing sector has been expanding with 60.9 points against the previous record of 58.5 points. On the other hand, figures from the US’ latest reports were better-than-expected. Investors are also looking forward to the result of the US election today, November 03. Analysts expected that a win for Joe Biden will be beneficial for South Africa as the country considers China as one of its largest trading partners. Biden is expected to be more accommodating to China while it will be more skeptical of Russia’s growing influence. The opposite is true for Trump.
USD/RUB
The pair will continue to move higher in the following days towards the $86.000 resistance level. While the recent report suggesting a potential win for Biden benefits the South African rand, it doesn’t do well for the Russian ruble. Moreover, the recent reports from Russia show a lagging economy amidst the COVID-19 pandemic. While most countries who published their Markit Manufacturing PMI reports turned out positive, Russia’s report was still below the 50 points benchmark. Monday’s result showed a decrease to 46.9 points from 48.9 points in September. One reason for the sluggish growth of Russia compared to other developing economies was the sanctions imposed by the United States for Russia’s annexation of Crimea. The west could further isolate the country after its refusal to its fossil fuel consumptions. Despite the overall sentiment in the Russian economy, investors should be cautious until the election results are published.
USD/CHF
The pair will break out from a downtrend channel resistance line, sending the pair higher towards a major resistance line. The US dollar is expected to rally against the Swiss franc as the country faces a second wave of coronavirus cases. On Friday, October 30, the country recorded the highest number of daily infections at 9,361, sending the total number of cases in Switzerland at 176,000 with 80,400 recoveries and 2,130 deaths. This, in turn, might lead to some investors to prefer putting their money on the greenback that in the Swiss franc. Switzerland’s economy is also underperforming against its peers in the region. Retail sales for the month of September only grew by 0.3% compared to the 4.0% increase in August. Meanwhile, its consumer price index (CPI) YoY declined by 0.6% and its month-over-month figure for the same report was stagnant at zero percent growth. Investors are expecting more disappointing result
s in the coming months.
USD/CZK
The pair will continue its uptrend movement and will retest a major resistance line in the coming days. Just like Germany, Czechia also posted a better-than-expected result for Q3 GDP but lower compared to its Q2 data. The figure for the third quarter came in at 6.2% against the previous quarter’s -8.7%. Another concern by investors on Czechia was the narrowing budget deficit at -$274.0 billion. The deficit in September was $252.7 billion. On the other hand, the US recorded its highest quarterly data on Thursday, October 29. In the third quarter, the US economy expanded by 33.1% which is higher than the contraction in Q2 at -31.4%. Sales for Q3 also went up by 25.5% while GDP price index was up by 3.7%. The positive figures from the US reports are expected to continue in the fourth and final quarter of 2020. The anticipated Black Friday, Cyber Monday, Thanksgiving, Christmas, and New Year events are expected to drive the US economy in Q4.
