Hey traders! Below are the latest forex chart updates for Friday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
EUR/CZK
The pair will break down from a major support line, sending the pair lower towards the March 05 low. The second lockdown in Germany, dubbed as “light lockdown”, which is extended until the end of December, will drag the single currency lower. The Gfk Consumer Climate report for the month of December already anticipated the continued decline in Germany’s economy after reporting a -6.7 points result, lower than the prior month’s 3.2 points data. However, it’s not only Germany who will experience contraction on its upcoming results but also France, Italy, and the EU bloc. As for France, consumer confidence dropped to 90.0 points from 94.0 points. Consumer Price Index (CPI) also remains flat at zero percent. Meanwhile, Italy’s business and consumer confidence dropped to 93.5 points and 99.0 points, respectively. The European Union also posted a disappointing result of -17.6 points for consumer confidence.
USD/HUF
The pair will continue to move lower to complete the “Double-Top Formation”. The recent US initial jobless claims report will remain as the main catalyst for the USDHUF pair. On Wednesday, the report added 778,000 new claimants this week, higher than analysts’ expectations of 730,000 and from its prior record of 748,000. The increase in the number of individuals filing for unemployment benefits matched the increase in coronavirus cases in the United States which is now at 13 million. As a result, personal income and spending had slowed down with the -0.7% and 0.5% results. These figures could lead to higher stimulus especially that the US House of Representative and the incoming government will be controlled by the Democrats. Currently, there is a $2.2 trillion stimulus bill that is still pending. However, this amount could change given the current status of the world’s largest economy.
USD/MXN
The pair will bounce back from a downtrend channel support line, sending the pair higher towards a key resistance line. Mexico’s economy expanded by 12.1% for the third quarter of the fiscal year. Meanwhile, economic activity for the month of September was up by 1.0%. On the other hand, retail sales surged by 2.7% month-on-month. These figures will sway away investors from the United States towards Mexico. Furthermore, the Mexican government has now an account surplus of $17.50 million which was a major improvement from its recent deficit of -116.0 million. This represents 6.90% of the country’s GDP. The recent statement from the country’s central bank head will also add weight to the Mexican peso in the coming weeks. Governor Alejandro Diaz de Leon Carrillo announced that the central bank will pause its interest rate cut, a positive news for the peso. He added that the positive recovery in Mexico will set aside the need for monetary easing.
USD/NOK
The pair will break down from a major support line, sending the pair lower towards the 8.14700 support area. Norway’s central bank expanded its QE program in an attempt to stir economic activity and support the local economy. On Thursday, November 26, Riksbank announced it will retain its current benchmark interest rate of zero percent. In addition to this, it will expand the asset purchase program from $58.7 billion to $82.0 billion, a 40% increase. Despite these monetary easing, Norway’s economy is more liquid compared to the United States. Norway’s sovereign wealth fund generates higher revenue in the recent months due to its exposure to US equities who saw their value to massively increase despite the pandemic. The Norwegian government made some withdrawal from the fund, but its revenue surpassed the withdrawal. On the other hand, the US’ debt continues to grow with the record-breaking stimulus program.
