Daily Market Charts and Analysis August 26, 2020

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

GBPAUD

Risk-on markets are bound to benefit the Australian dollar as it benefits from US President Trump’s authorization to use blood plasma for Covid-19 patients as treatment. Although the region down under doesn’t have any notable data due until later this week, the exchange rate is still expected to fall as markets grow concerned over the United Kingdom’s relationship with its Eurozone peers. No-deal Brexit is still likely. The EU’s Chief Negotiator Michel Barnier confirmed that negotiations between the conflicting powers are likely to see a definite end after Britain’s forced withdrawal from European partners. That said, the pair’s 50-day moving average is still skirting sideways below the 200-day moving average, keeping the pair locked in with the bears. Moreover, the Sterling is still suffering across many of its currency opposites due to concerns of its economic recovery from the coronavirus lockdown.

USDSGD

The US dollar has shown strength against the Singaporean dollar last week, but the pair’s 50-day moving average looks like it’s about to end the slight gain after it crossed down its 200-day moving average in recent trading. Risk appetite is projected to benefit the Singaporean dollar near-term brought by investors’ worry of the Federal Open Market Committee’s meeting minutes last week that ignited selling pressure for the greenback. Concerns over the economic effect of the coronavirus will help ASEAN currencies while it keeps control of the supply flow around alternative markets, weighted further by US-China tensions as of late since its phase one trade deal was postponed. Singapore’s better-than-expected CPI figure both in yearly and estimate comparisons at -0.4 percent against -0.5 percent and -0.7 percent, respectively will help investors root for its currency against the American dollar specifically.

EURDKK

Risk-on markets are fueling the Danish krone. A new study also proclaimed that Denmark may only have small economic costs from its social distancing laws thanks to its quick response to the virus’s outbreak in the nation. Although its economy saw a relatively steeper decline in the first few months of the pandemic, markets claim that its stricter response will help its economy in the long run, helping bearish markets engaged in the Danish krone. Moreover, thanks to its reopening, spending in Denmark has almost fully recovered in July. Led by its status as the “fast in, fast out” economy, the euro-krone pair’s 50-day moving average is witnessing further falls away from its 200-day moving average. Italy also shocked the forex market when it reported a spike of more than 1,000 new Covid-19 cases in the country in 24 hours since the first time its lockdowns were eased, which forced another nationwide lockdown. 

EURTRY

Turkey’s finance minister admitted that his previous forecast for the country’s economy of a 5 percent expansion for the full year of 2020 was wrong. Berat Albayrak said that it could contract by up to 2 percent. IMF forecasts claim that the Turkish economy will contract by 5 percent. In Eurozone, economists project that its central bank support and a possible breakthrough in fiscal collaboration could shorten the economic decline in the region. Euro stock markets are projected to help its currency boost in the long term, creating trust even in the short term. EURTRY’s 50-day moving average reached far above its 200-day moving average since the first half of this year, and bullish investors have been taking over ever since. The trend is expected to continue despite a blanketed risk-oriented market largely due to the lack of economic data reports from the Turkish government as Greece and Turkey expand their gas exploration tensions.