Market News and Charts for September 15, 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!
The Norwegian krone’s strength has shown signs of slowing down in the past few sessions, allowing the US dollar to recover some of its losses in the previous days. However, it now appears that the trading pair is heading down towards its support level in the coming weeks as the US dollar remains bombarded with uncertainties. Perhaps the strength of the krone is held back by the news about new restrictions that are coming for Norway. Just recently, Prime Minister Erna Solberg announced that restrictions could soon be implemented or tightened both at a local and national level to contain the spread of the coronavirus in the country. Norway’s second-largest city, Bergen is the present epicenter of the pandemic in the nation and the number of cases there continues to climb, alarming investors over its economic outlook. As for the US dollar, bulls failed to defend themselves as they await the outcome of the Federal Reserve’s meeting which is due this week.
As Poland is deemed as one of the best-performing countries in terms of economy during the pandemic, the Polish zloty remains significantly strong against the US dollar. The exchange rate is bound to crash to its support level soon as the confidence of bulls gets affected by the upcoming meeting of the US Federal Reserve. The greenback is also held back by the fact that law makers in the country cannot simply agree on their next step to aid the country’s faltering economic recovery. This puts pressure on the Federal Reserve and the monetary policy makers who are set to meet before the November election this Tuesday and Wednesday. It’s a no brainer that the decision will be crucial to the strength of the US dollar in the foreign exchange market and on the recovery of the economy. The Fed is widely expected to set its new economic and interest rate projections that should run for a few more years, or at least until 2023.
It’s believed that the coronavirus pandemic has caused major problems for the Israeli shekel. But in spite of that, it appears that bulls still don’t have enough strength to recover in the trading sessions. And as the US dollar continues to get pressured by the fundamentals around it, bets are on the shekel. Prices are now projected to go down towards their support level before the month ends. See, since the pandemic began, the Central Bank of Israeli has been working to prevent the shekel from further appreciating. However, it appears that the buck is significantly weaker against it. Moreover, Andre Abir, the Deputy Governor of the Bank of Israel said that if the nation once against loses control in the country’s opening after the lockdown, the situation there could be totally different. According to the central bank official, the authorities have been having a change in sentiment in the past few days as investors seem to be less confident now.
The bearish trend of the US dollar to Swedish krona trading pair has eased in the past few days. Unfortunately for bulls, the price is still forecasted to go down towards its support level thanks to the broader vulnerability of the buck. It was previously reported that the governor of Riksbank, the country’s central bank, said that the appreciation of the Swedish krona is not a cause of concern for them. Riksbank Governor Stefan Ingves’ comments helped the trading pair to steady. On the other hand, the US dollar is also weighed on by the latest news about the coronavirus vaccine and big corporate deals, which have been improving the risk sentiment in the global market. helping the sentiment is the news that AstraZeneca resumed its clinical trials for its coronavirus vaccine in the United Kingdom. Meanwhile, Pfizer Inc. and BioNTech SE, two of the companies that are considered as front runners in the race, are proposing to expand their phase three vaccine trials.
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