Market News and Charts for September 08, 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!
Brexit-related concerns continue to pin down the British pound against the Australian dollar in the trading sessions. Prices of the exchange rate are projected to go down towards their support level despite the push and pull in strength faced by the Australian dollar in the recent sessions. Luckily for bearish investors, most experts argue that the Reserve Bank of Australia isn’t likely to cut its interest rates any more to stimulate the struggling economy. However, some also believe that there is a chance that the bank would expand its quantitative easing program to act as support for the economy. Recently, it was reported that Australia’s coronavirus hotspot, the state of Victoria, extended its hard lockdown in its capital city, Melbourne, to fully contain the spread of the virus. The decision to extend the restrictions comes despite the decline in the rate of new cases recorded each day in the area. The decision, of course, will have an impact on the economy.
The British pound to Canadian dollar exchange rate slows down this Tuesday as both currencies struggle to take control of the direction. The pullback in crude oil prices has prevented the Canadian dollar from rallying today. Despite the indecisiveness in today’s trading, the pair’s prices are still projected to plummet to their support level this September. On the other hand, the sterling is held back by the intense concerns of investors to the growing mistrust of both sides on the Brexit negotiations. Just recently, a report said that the European Union’s faltering trust in British Prime Minister Boris Johnson has been laid based on a leaked diplomatic cable obtained by the press. This comes as Brexit deal negotiations reopen in London with a warning that the UK must respect international law. Investors are growing more and more concerned about the fate of the divorce and the impact of a no-deal scenario on the United Kingdom’s economy and currency.
The Danish krone is losing its steam against the US dollar and the trading pair is now climbing up as bullish investors look to redeem themselves. The US dollar to Danish krone exchange rate is projected to reach its resistance level in the latter half of the month and finally, recover from the bearish waters. The reason for the krone’s weakness is the new restrictions announced by the Danish government as the number of cases in the country increases once again. According to local reports, the new lockdown restrictions will be enforced on 18 Danish municipalities and it will limit the assembly of people from 100 to just 50 people. Yesterday, 230 new confirmed cases of the coronavirus were registered by the Statens Serum Institut, alarming the government of a possible new cluster of cases or hotspots in the country. Health minister Magnus Heunicke said that the current situation with COVID-19 is the most concerning scenario since spring in the country.
The New Zealand dollar slowly takes down the British pound in the trading sessions. Looking at it, both currencies are facing hurdles on their ends but in the end, the antipodean currency is coming out stronger. The exchange rate’s prices should reach their support level in the coming sessions as bulls worry about the intensifying Brexit tensions. Moreover, it was reported that borrowers in New Zealand continue to have difficulties with mortgage payments. See, the government and the Reserve Bank of New Zealand introduced the mortgage deferral scheme to give chance to citizens to reduce or postpone the payment of their mortgages. However, as most citizens remain affected by the global pandemic, the struggle in mortgage payments could bite back, ultimately hurting the country’s economy and currency. But in the meantime, the main concern of investors of the trading pair is the B rexit tensions as Brussel’s expresses its mistrust in the United Kingdom.
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