Market News and Charts for November 11, 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 break down from a major support line, sending the pair lower towards the 1.32000 resistance area. Asia’s coronavirus cases remain stable despite the resurgence of the deadly virus in Europe and North America. This week, the US surpassed 10 million total cases of COVID-19 while some countries in Europe implemented a second lockdown. Meanwhile, Singapore had only 1-digit daily infection cases throughout November making Asia, particularly Singapore, a good investment hub for businesses. Aside from this, the country is looking to build up its reserves and take advantage of the weak US dollar. USD reserves by Singapore in October jumped to $338.0 billion compared to the prior month’s $328.0 billion. This, in turn, will hedge the Singaporean dollar against economic uncertainties. In other news, US Chamber of Commerce CEO Thomas Donohue calls for the passing of the new stimulus bill before the inauguration of Biden.
The pair will continue to move higher in the following days towards a major resistance line. Countries are isolating Denmark following reports that around 15,000 minks in the US have died due to COVID-19. Meanwhile, the Danish government proposed to cull 15 million minks in the country as fears of mutation worries the authorities. On Friday, November 06, the country was put in a lockdown. On the same day, the UK announced that it is shutting travels between the two (2) countries. As for Germany, the EU’s largest economy, economic recovery might take some time as the country entered a “light lockdown”. Unlike Denmark, however, restrictions in Germany were more modest to prevent the economy from further collapsing. Schools and restaurants in Germany are still open while Denmark totally shuts the economy down. Investors should also keep an eye on the Brexit negotiations and how it will impact its closest ally in the bloc, Denmark.
The pair will continue to move higher in the following days towards the 11.00000 resistance level. The rising COVID-19 cases in Europe last week has brought the EURTRY lower amid the France-Turkey tension. On Monday, November 09, the pair declined by 5.84%, its largest single-day decline this 2020. Despite this, the pair will still advance due to the pessimism in Biden’s victory against US President Donald Trump in the recent election. President-elect Biden promised to join the Paris Accord on his first day at the White House, which could fix America’s relationship with the EU. For Turkey, this could mean lesser influence in the US policies. In other news, Berat Albayrak, finance minister and President Erdogan’s son-in-law, resigned. Investors were mixed on this news. Some are hopeful now that the person responsible for Turkey’s downfall is already out. However, a few investors await the new finance chief before making investment moves.
The GBPAUD pair will break out from several resistance lines before retesting a major resistance line. The UK’s labour market will continue to deteriorate amid the second lockdown in the country. Prior to the lockdown announcement by Prime Minister Boris Johnson, the unemployment was already skyrocketing as evident on the recent unemployment report. Unemployment change for the month of September was down by -164,000 compared to the prior month -153,000. As a result, the unemployment rate jumped to 4.8% from 4.5% in the previous month. This was the highest recorded rate in the UK since 2017. On the other hand, Australia is also struggling to recover from the pandemic. Westpac consumer sentiment for November was up by 2.5% against the 11.9% record in October. Meanwhile, the Reserve Bank of Australia (RBA) slashed its interest rate by 15 basis points to its lowest rate in history at 0.10%.