Market News and Charts for September 10, 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 Brazilian real is finally recovering against the euro. Bearish investors stepped up their game despite the overly pessimistic sentiment of the market for the Brazilian real. Fortunately, they were able to pull the pair lower, preventing the euro from snatching more gains. Looking at it, perhaps the recent weaknesses faced by the euro in the global market helped bearish investors. Now, the exchange rate is projected to go down towards its support level as investors wait for the meeting of the ECB. Just recently, it was reported that most experts believe that the ECB could announce some tweaks in their monetary policy this week due to the recent reports about the bloc’s economy. During their last meeting, the bank didn’t make drastic changes as the economic data during that time were showing signs of recovery. However, the core inflation in the eurozone has slumped last month, raising speculations as to whether it would have an impact on the meeting’s outcome.
Concerns over the Brexit deal is reasserting its bearish hold on the British pound, allowing the Brazilian real to recover in the trading sessions. The GBPBRL trading pair is now widely expected to head towards its resistance level in the coming weeks, allowing bears to redeem some of their losses in the sessions. Just recently, it was reported that the United Kingdom and the European Union have scheduled an emergency talk as the tension between the two parties continues to rise. British Cabinet Office Minister Michael Gove is reportedly set to meet EU’s official Marcos Sefcovid in London to talk about how the recent developments could have an impact on the island of Ireland. It was reported that the Brussels wants “clarifications” over the implementation of the deal. Meanwhile, it was also reported that the UK’s Brexit negotiator, Lord Frost, and his EU counterpart, Barnier, will continue the trade talks for the Brexit deal.
The selling pressure on the USDBRL continues and bears pull the prices of the pair lower in the trading sessions. It is not believed that the Brazilian real could force the US dollar towards the pair’s support level. Perhaps the main factor that’s preventing the Brazilian real to fully regain its control is the reception of the public to the government’s coronavirus response. The Latin American nation has now surpassed the 127,000-mark in its death toll and the number of cases in the country is now over 4,160,000. The most populous state in the country, Sao Paulo is the hardest-hit state which has more than 858,000 confirmed cases. On the other hand, the improving risk sentiment in the global market is preventing the US dollar from defending its gains against the Brazilian real in the trading sessions. Aside from that, the rebound of the US stock market after the sharp sell-off from the previous days also hindered the cause of bullish investors.
Looking at the chart, it appears that the Romanian leu is struggling to take the US dollar down towards its support level as bulls try and defend themselves. However, it could be argued that the US dollar still doesn’t have enough back up to recover against the leu, easing the concerns of bearish investors in the trading sessions. It is believed that the pair will go down towards its support by the latter part of the month. It’s worth noting that the Romanian leu is significantly weakening against the single currency. Fortunately for bears, that is not the case on its match up with the US dollar. Perhaps the main support of the Romanian leu right now is the good performance of the country’s economy. According to most experts, the nation’s economy is at its best performance since the pandemic began. Although the economic activity may not be as par with its pre-COVID levels, it’s still a great notable improvement that keeps investors confident.
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