Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
The trading pair is currently trading near a critical support level and should go down to its support level by the first half of August. The Norwegian krone continues to strengthen against the euro thanks to the commendable performance of crude prices in the commodity market. Bears are hoping to finally push the market into their favor and force the 50-day moving average towards the 200-day moving average. Last week, the Norges Bank called on to the EU leaders to harmonize in order to agree on a stimulus program to help the region recover from the pandemic’s damages. And just this week, the leaders finally reached an agreement which ultimately fueled the confidence of bearish investors. This is because a strong economic recovery would help crude oil demand which should be very beneficial for the Norwegian krone. Just recently, it was reported that the Norges Bank raised its shares to about 5% in BHP, a known fossil fuel giant.
The recent monetary policy decision of the Hungarian national bank has slowed down the momentum of the Hungarian forint against the euro. However, forint is still clearly strong enough to hold itself amidst a strength-zapping rate cut. The euro to Hungarian forint trading pair is projected to fall towards its support, and because of the rate cut, the fall slightly slowed down. The move should help bearish investors push the 50-day moving average closer to the 200-day moving average, limiting the strength of bullish investors. Moreover, it was reported that yesterday that the National Bank of Hungary unleashed a 15-basis point rate cut, lowering its official interest rates to about 0.6% on Tuesday. The interest rate cut was widely expected by the market thus capping the damages on the Hungarian forint. The NBH has cut its rates for the second consecutive month, and the first easing move really caught the market by surprise.
The Russian ruble looks helpless against the bloc’s single currency. The strength of the crude prices and the commodity market fails to support the Russian ruble as it faces a ton of fundamentals going against it. The euro to Russian ruble pair should advance towards its resistance level, climbing towards ranges last seen in early April. The trading pair’s rally should help bullish investors hold on to their dominance and push the 50-day moving average significantly higher than the 200-day moving average. The intense pressure continues to greatly weigh on the Russian ruble, the new wave of foreign policy and investor suspicion is forcing to ruble to its knees against the euro. Just recently, Russia was accused by the West of attempting to steal developments on the coronavirus vaccine. Aside from that, there are new sanction threats that come after the connection with the implementation of the highly controversial Nord Stream 2.
The Polish zloty strengthens right away after the 2020 presidential elections in Poland. The trading pair is widely projected to continue its fall towards its support level, reaching ranges last seen in mid-March. Last week, Poland’s incumbent President Andrzej Duda snatched the highly anticipated presidential seat, sending a wave of optimism for bearish investors of the EURPLN pair. Once prices hit their support, bears would be able to force the 50-day moving average closer to the 200-day moving average. Moreover, since today, the Polish zloty’s gains were limited by the recent news from the Polish central bank. Yesterday, it was reported that Poland’s central banker, Eryk Lon, said the most recent economic forecasts that there is no reason to adjust the country’s interest rates. Lon’s dovish stance causes the zloty to slightly falter especially after the recent interview of another central banker saying that inflation might come in stronger.