Market News and Charts for October 12, 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!
NZD/JPY
The recent reports regarding the Chinese yuan manage to slow down the New Zealand dollar this Monday. However, the trend is expected to remain bullish as the antipodean currency aims to force the Japanese yen to its resistance level in the coming trading sessions. The weak stance of the Chinese yuan has held back both the kiwi and the Aussie this Monday and it comes after the People’s Bank of China said that it would lower the reserve requirement ratio for financial institutions in the country when conducting some foreign exchange forwards trading. Also, it’s worth noting that most experts believe that the upcoming elections in New Zealand won’t have any major impact on the direction and outlook of the New Zealand dollar. On the other hand, the rising hopes for a second stimulus aid from the US government is causing the safe-haven appeal of the Japanese yen to falter in the market, rendering it weaker against other major currencies.
USD/SGD
The optimism in Singapore and its economy allows bearish investors of the USDSGD trading pair to continue their dominant run in the trading sessions. Looking at the charts, it initially appeared that the US dollar might finally recover against the Singaporean dollar. However, the positive attitude of investors for Singapore’s outlook outweighs the fundamentals that backed up the US dollar. Earlier last week, Singapore’s Deputy Prime Minister Heng Swee Keat said that the country’s economy is in a stable position to stand against the coronavirus pandemic but has warned the public to remain vigilant amidst the profound uncertainties. Among the uncertainties mentioned by the deputy prime minister is how well would other countries handle the coronavirus and reopen their economies successfully and safely. Also, the highly anticipated coronavirus vaccine will also play a big role in the full recovery of the Singaporean economy.
EUR/DKK
The rising number of coronavirus infections in the eurozone is straining the beloved single currency in the sessions, allowing bearish investors to see an opportunity in the coming weeks. Looking at it, the negative sentiment towards the eurozone is weighing on the euro. Just recently, it was reported that an analyst even said that the United States is leading the eurozone in terms of economic recovery. Europe has been struggling to stem the outbreak of new coronavirus cases in the region and several major economies in the bloc are seeing record numbers of infections. As a region, Europe is now officially recording more cases than India, Brazil, or even the United States. However, the people in Denmark are also feeling uneasy about the coronavirus vaccine and the resurgence of new cases in the country. According to the latest survey in Denmark, only half of its citizens are willing to receive the vaccine and a huge percentage are only partly willing.
EUR/TRY
The Turkish lira continues to climb to record highs in the trading sessions despite the hurdles faced by the bloc’s single currency. It’s believed that the geopolitical and economic concerns regarding Turkey have pushed the currency to its lowest against the euro. Just recently, it was reported that Turkey’s decision to move its ships to contested waters in the East Mediterranean has angered Greece. Ankara moved earlier this Monday to carry out its seismic survey activities south of the Greek island of Kastellorizo. According to the Greek foreign minister, this decision further threatens the peace and security of the people in the area. Greece is reportedly calling on Turkey to recall its decision, saying that the research mission is a direct threat to the peace and security of the people and region. Yesterday, Ankara’s navy issued an advisory that said the Oruc Reis ship would push through and conduct a seismic survey in the area over the next ten days.
