Daily Market Charts and Analysis August 13, 2020

Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.

USDSEK

It’s not a great time for bulls as the US dollar to Swedish krona exchange rate continues to trade in bearish territories. Prices are widely projected to go down towards their support level, hitting ranges last seen in April 2018. The stronger than expected results recorded by Sweden helped the Swedish krona maintain its grip on the US dollar. Yesterday, Sweden reported that both of its monthly and annual consumer price index for July produced commendable results. According to official results, Sweden’s July monthly CPI fell from 0.6% to around 0.2%, marginally better than prior projections of 0.1%. Meanwhile, the country’s annual CPI dropped from 0.7% to about 0.5%, coming in slightly better than earlier estimates of 0.3%. However, there are still some problems for bearish investors. Critics are urging the Swedish government to reconsider its virus strategies as some studies show that its plan to achieve mass immunity isn’t really working.

USDNOK

The recently released oil inventory data has helped keep oil prices higher which in turn, bolstered the Norwegian krone against the US dollar. As of writing, prices are seen struggling to gain any proper ground and both bulls and bears are having difficulties seizing the momentum. Despite that, the pair is still expected to gradually go down to their support level. Looking at it, the move should further push bearish waters, forcing the 50-day moving average even lower against the 200-day moving average. The connection of the Norwegian krone to crude prices has been paying off. And considering that oil inventories have been going down for three weeks in a row. The Energy Information Administration unveiled yesterday that the US oil inventories dropped by another 4.5 million barrels for the week ending on August 7. However, there is a potential for a reversal in the near future as the OPEC admits that the 2020 demand is even worse than estimated.

USDPLN

Bears are bracing themselves for the upcoming GDP and CPI reports from the Polish economy scheduled to be released tomorrow. The report will, of course, have an impact on the trading pair’s direction. But considering that bulls aren’t confident with the US dollar yet, it’s believed that the chances are bigger for bearish investors. Prices should go down towards their support level, hitting its lowest ranges since September 2018. The fall should push the 50-day moving average even lower against the 200-day moving average, maintaining the strong bearish sentiment for the pair. Poland’s second quarter quarterly gross domestic product is expected to crash from -0.4% to -9.6%. at first, the would sound detrimental for the strength of the Polish zloty, however, economists are arguing that Poland’s economy is actually returning to its pre-pandemic state faster than anticipated.  Warsaw was given a grading of 3 out of five in terms of recovery speed.

USDILS

The Israeli shekel continues to pull the US dollar down, and the broader weakness faced by the latter currency is making it sweeter for bearish traders. The US dollar is hammered by the fading hopes of investors for Democrats and Republicans to find a common ground and agree on an additional stimulus for the US economy. Another factor that’s slowing down the greenback is the alarming decline in treasury yield, which experts believe it’s more likely a temporary setback because US lawmakers would eventually agree on a stimulus. Prices of the pair are expected to go down to their support level, hitting its lowest reading since June 2011. Moreover, it was just recently reported that the aid agreement between the US and Israel was updated. According to reports, the Defense Ministry is expected to cut its acquisitions from the Israeli defence industries. But experts argue that it won’t have a massive impact on the Israeli economy.