Market News and Charts for October 05, 2020

Hey traders! Below are the latest forex chart updates for Monday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!

USD/CHF

The Swiss franc sees a window of opportunity to bring the US dollar down in the coming trading sessions as it gains more safe-haven appeal from the uncertainties brewing in the United States. It’s widely projected that the Swiss franc can push the pair’s prices lower towards its support levels in the coming months despite the major hurdles faced by the Swiss National Bank. Just recently, it was reported that the SNB is facing national security concerns for its work culture as lawmakers focus on emerging allegations of discrimination against women. This raises backlash from critics, and this could add concerns to the Swiss franc if it worsens in the long run. Meanwhile, the buck is slightly losing its footing thanks to the reports about the massive stimulus program proposal in the United States. It’s worth noting that the direction of the pair this week will be highly affected by the investor sentiment towards the health of the US president and the stimulus.

EUR/CHF

The beloved single currency continues to fall onto its knees as bearish EURCHF traders continue to power through in the market. It is expected that the euro to Swiss franc trading pair will go down towards its support level in the coming weeks and reach ranges last seen in July this October. Most experts argue that the euro has a huge chance to see more bearish territories in the latter parts of the year as investors get more concerned about the bloc’s economic recovery and the Brexit ties. In fact, most experts believe that a strong euro could eventually hurt the economic recovery of the eurozone and are speculating as to whether policymakers would unleash further stimulus that could weaken. Recent reports say that the European Commission also said that the euro appreciated around 7.5 in nominal effective terms between February and August and this may have an impact on the bloc’s recovery prospects, slowing it down instead of helping it to bounce back.

EUR/GBP

Both the euro and the British pound are affected by the intensifying Brexit tension between the European Union and the United Kingdom. The exchange rate’s prices are bound to fall to its support level this month thanks to the unending news. Just recently, it was reported that the EU has finally started its legal proceeding against Britain after it refused to ditch the plans to override sections of its Brexit divorce deal. An EU deadline for the government to remove sections of the internal market bill expired last week Wednesday. However, the EU has not walked away from the discussions over the post-Brexit trade deal. Ursula von der Leyen, president of the European Commission said that the United Kingdom would have until the end of November to answer the bloc’s concerns over the draft legislation. This further prolongs the feud between the two groups, drawing uncertainties as to whether they could actually agree on a trade deal for the divorce.

USD/CZK

The safe-haven appeal of the US dollar is working well against the Czech koruna and it seems that some investors are even brushing off the negativity for the greenback today. Looking at it, the trading pair’s prices are clearly on track to continue its climb towards its resistance this October. The Czech koruna is held back by the recent reports that the Czech Republic is official back under the state of emergency as the number of infections continues to rise. Andrej Babis, the country’s prime minister, announced the state of emergency after a “rocket-like increase” in the number of infections in the country. Meanwhile, the security appeal of the greenback is further backed up by the recent reports about more infections among lawmakers in the United States. Just recently, it was reported that the New Jersey Department of Health said that it has contacted a number of people who have had close contacts with the president and have recommended them for isolation.