Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
The euro feels the pressure of the revised gross domestic product projections for the eurozone. The New Zealand dollar takes advance of the weakness of the single currency, steadying the pair this Wednesday. However, the EURNZD pair is still widely expected to continue its upward trajectory in the trading sessions. Bulls continue to hold on to the momentum as the 50-day moving average rallies farther from the 200-day moving average, signaling strength for the euro. The pandemic is paralyzing the region and experts say that the peak of the coronavirus in Europe is still by late-April. Economists have adjusted their GDP forecasts for the eurozone this 2020, projecting a downturn of about -6%. As for the New Zealand dollar, it remains highly vulnerable and sensitive to the fluctuating risk-sentiment and t’s expected to face a tough ride this week. If more news comes about the slowing global economy, it could weigh down the kiwi’s performance.
The Australian dollar is set to have a short-term boost in the coming sessions, which then would propel it to its key resistance level. However, the AUDNZD pair remains widely bearish as the 200-day moving average is seen significantly above the 50-day moving average. Right now, investors are still moving cautiously as mixed signals come from the market. There have been talks that the number of new confirmed cases has finally slowed down, and the curve is gradually flattening. But it also appears that everything isn’t finished yet as major countries see huge spikes in cases. As for Australia, it has already toughened its regulations about social distancing. Earlier this week, the Australian Prime Minister announced the new guidelines, including limiting gatherings to a maximum of two people. But other states in the country adjusted their measures even further to ensure maximum effort against the deadly virus.
The Brazilian dollar is bound to hit its weakest level against the euro. Investors are holding tight as the pair heads towards its resistance level. Since the month began, bullish traders have propelled the 50-day moving average away from the 200-day moving average. Controversies keep coming from Brazil, turning off investors. It’s reported that some of the most renowned members of the Brazilian left have now demanded that Brazilian President Jai Bolsonaro reigns following the reckless and cynical handling of the coronavirus crisis. It can be recalled that the president himself went to the streets of Brasilia to urge people to continue making the economy work. The move of the far-right president has angered major sectors and large sections of the society. Downplaying the virus and showing that the economy is his priority has turned off some investors of the Brazilian real, biting back to the currency’s performance in the market.
Despite the turbulence today, the British pound remains unfazed as they are determined to pull the GBPBRL pair higher. The pair has been on a relatively bullish trend as since the year began, the 50-day moving average advances farther from the 200-day average. Apparently, both currencies are facing major controversies and issues about their handling of the pandemic. In Brazil, President Bolsonaro’s actions have provoked sectors and figures in the country. As for the United Kingdom, the death toll, unfortunately, jumped by 27 per cent in just one day. The disturbing and unfortunate news for the country as it faces the virus. According to the British government, the number of deaths has climbed to 1,789 as of Monday. If this continues, the lockdown could last even longer, and it could push the government and the BoE to unleash further stimulus. And more stimulus could strain the strength of the British pound.