Market News and Charts for November 26, 2020
Hey traders! Below are the latest forex chart updates for Thursday’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 its steep decline towards its March 27 low. Both Australia and New Zealand are members of the world’s largest trading bloc, the RCEP (Regional Comprehensive Economic Partnership). This membership is expected to boost their economies and accelerate their recoveries. Between the two (2), however, New Zealand is expected to lead the race with its success with COVID-19. Australia also has a low case of virus transmission. However, Melbourne remains on a lockdown as it became the epicenter of the pandemic in the country. In New Zealand’s most recent reports, recovery is already visible. Figures for Imports, Exports, and Trade Balance report came in at $5.29 billion. $4.78 billion, and -$1.0 million, respectively. All of these figures were better than their previous records of $5.02 billion, $4.01 billion, and -$1.02 million. Investors should be aware of how the RCEP will impact Australia and New Zealand’s economies.
The pair broke down from an uptrend support line, sending the pair lower towards a major support line. Europe is going backwards as the resurgence of COVID-19 offsets the recovery that each country in the region made in the previous months. The disappointing Manufacturing and Services PMI reports will remain as the key driver for the single currency in the coming days. Germany had the most optimistic result at 57.9 points and 46.8 points. These figures are already worse than their previous records. Meanwhile, France took the most hit among European Union member states after announcing 49.1 points and 38.0 points on the above-mentioned reports. The EU bloc’s numbers of 53.6 points and 41.3 points are between Germany and France’s data. On the other hand, the increase in Brazil’s revenue through taxes could help its economy to stay afloat during the resurgence of the coronavirus pandemic globally.
The British pound is expected to follow the downward trajectory of the euro currency in the following days. The United Kingdom outperformed its peers in the EU, which made the pound more resilient against quoted currencies. However, the uncertainty brought by the deadly virus and the looming withdrawal of the UK from the EU could soon put a dent on the GBP’s performance. On Monday, November 25, the UK reported better figures compared to France, the EU’s third largest economy. Figures came in at 55.2 points, 45.8 points, and 47.4 points for the Manufacturing, Services, and Composite PMI reports, respectively. However, analysts are anticipating these results to be worse in the coming weeks as only 35 days remain before the UK officially leaves the bloc. The UK economy is expected to lose around $25.0 billion by 2021 by losing access to the European Union’s single market.
Investors will shrug off any positive data from the US on the remaining days of the week. This was following the worse-than-expected result for the initial jobless claims report. In the third week of November, the figure for the report unexpectedly increased by 748,000 despite lower expectations at 707,000 from 711,000. For this week, investors anticipated a 730,000 increase in the number of claimants of unemployment benefits. On Wednesday, November 25, investors were left disappointed once again after the actual result was announced. For the last week of November, the number of filings jumped by 778,000. That means that any improvement made in November had vanished as the number became the report’s 5-week high. This is expected to force the House of Representative to pass a higher budget for the new stimulus package. On the other hand, Romania received aids from the EU of $5.25 million from the COVID-19 budget.