Market News and Charts for October 06, 2020
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!
EUR/JPY
The euro bounces back against the Japanese yen in the trading sessions yesterday, but bearish investors try to defend their gains this Tuesday. However, the euro to Japanese yen exchange rate is still projected to climb up to its resistance level in the coming trading sessions, hitting ranges last seen just last month. The safe-haven appeal of the Japanese yen isn’t working well against the euro despite the uncertainties brought by the recent confirmation that US President Donald Trump tested positive for the deadly coronavirus. Looking at it, most major currencies, including the US dollar, are seen gaining ground against the Japanese yen. On the other hand, the bloc’s single currency appreciated against most major currencies since the start of the pandemic. And just recently, a source close to the matter said that the finance ministers of the group will continue to monitor the strength of the exchange rate against a basket of currencies in the market.
USD/CAD
Thanks to the oil market’s current status, the US dollar to Canadian dollar exchange rate continues to head down in the trading sessions. And it is projected that the trading pair’s prices would go down to its support level in the coming days. The recent news about the United States president’s health after testing positive for the virus last week has boosted the optimism in the commodity market. Just recently, it was reported that President Donald Trump staged a reckless departure from the Walter Reed National Military Medical Center yesterday, telling his supporters that the virus has dangerously deprived him of oxygen. Trump’s move has somehow assured the market that he is now feeling better and that he can recover from the coronavirus. In addition to that, the markets are also hoping that the Republicans and the Democrats will be able to agree on a consensus stimulus program that would help the US economy in the coming months again.
NZD/USD
The New Zealand dollar to US dollar exchange rate will face slightly bearish tides in the coming trading sessions and the prices are expected to gradually go down to its support level. The exchange rate is affected by the recent decision of the Reserve Bank of Australia, New Zealand neighbor, to leave its interest rates unmoved at about 0.25% for the seventh consecutive month. Looking at it, the antipodean currency may have forced the US dollar to steady this Tuesday, but it was no match against other riskier assets in the foreign exchange market. Moreover, it was just recently reported that the New Zealand prime minister said that the nation has successfully beaten the coronavirus once again. The nation is celebrating its victory against the second wave of infections and is cementing its position as one of the very few nations that have conquered the pandemic. Prime Minister Jacinda Ardern’s approval rating soared following the recent announcement.
AUD/JPY
The Australian dollar faces some headwinds this Tuesday in the foreign exchange market. However, the safe-haven currency, Japanese yen, does not have enough strength to push prices higher in the trading sessions. As of writing, the trading pair is seen struggling to gain some momentum and prices are somehow neutral. The Australian dollar is affected by the recent decision of the Reserve Bank of Australia to leave its interest rates unmoved for the month of October. According to an expert, the statement of the RBA doesn’t reek of urgency to act or move its interest rates, suggesting that the bank is still weighing in on the initial rate cuts made. Moreover, the Japanese yen is seen falling behind other currencies in the market thanks to the recent news regarding Trump’s health finally improving. The latest statement of the US President Trump’s doctor has boosted the risk sentiment in the market, weakening the yen’s security appeal.
