Market News and Charts for October 15, 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 headwinds faced by the euro has reflected on the performance of the EURBRL trading pair in the recent days. However, it is projected that the downside pressure from the pair won’t die down anytime soon, thus, prices should continue to head to its resistance level in the coming weeks. It is believed that the Brazilian real would continue to weaken as the economy takes more beating from the coronavirus pandemic. See, just recently it was reported that the Latin American country’s coffee experts, one of its major money makers, will, unfortunate, grind to a halt even in its peak season thanks to the virus’ threat. Meanwhile, the euro is also facing some troubles, mainly from Brexit related concerns and the rising number of new cases in the region. Investors are closely waiting for further development from the highly anticipated EU summit, wherein it’s expected that the UK-EU divorce would be its main focus as the deadline for the deal approaches fast.
The British pound to Brazilian real exchange rate remains sluggish this Thursday as investors wait for further guidance from Brexit related news. Well, it’s already evident that bulls still have this on the bag and that the Brazilian real isn’t expected to regain its losses anytime soon. It is projected that the exchange rate will soon hit its resistance level by the first half of November. The Brazilian real is weighed on by the woes of investors for the country’s finances. As the Latin American powerhouse continues to take major blows from the pandemic, the currency has depreciated drastically against major currencies like the sterling. The poor performance of its exports from the recent months has alarmed the market. And now, the country is facing another major problem as the coffee traders have a hard time shipping out cargos of their crops. If this won’t be solved soon, it could add further pressure on the Brazilian real, allowing the pound to secure more gains.
The US dollar advances in the trading sessions and forces the Brazilian real into the defensive. The USDBRL is widely projected to climb to its resistance level despite the turbulence faced by the US dollar. Looking at the bigger picture, the safe-haven appeal of the US dollar is its main selling point in the trading sessions this week. Investors are scrambling towards safety as more uncertainties continue to pop up in the global market. At the start of the week, the US dollar was boosted by the concerns for the US Congress and whether policymakers would agree on a fiscal stimulus before the highly anticipated US presidential elections early next month. Meanwhile, some experts are also getting hopeful thanks to the recent news that the US Centers for Disease Control and Prevention said that it believes that a coronavirus vaccine could be released by the end of the year. This comes as more people become skeptical about the vaccines being developed.
Currencies from Europe plunge as the number of cases alarmingly climbs up in the region, this means trouble for the Romanian leu against the US dollar. It is believed that the safe-haven appeal of the beloved greenback will attract more concerned investors and push the USDRON trading pair’s prices higher towards its resistance level. The global risk sentiment has been faltering thanks to the announcement that Johnson & Johnson and Eli Lilly’s separate coronavirus vaccine trails will stop. Bears stand no chances against the US dollar’s prominence as this lessens the optimism of the market for the cure for the virus. See, Romania has been seeing record numbers of new coronavirus cases recently. Just yesterday, it, unfortunately, faced its highest number of new infections within 24 hours. Investors are devastated and alarmed as if this scenario continues to broil, it could have detrimental effects to Romania’s economy and currency.