Daily Market Charts and Analysis June 01, 2020

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

USDZAR

The South African rand takes advantage of the confusion and the risk appetite to gain against the US dollar. However, with the escalating tension in Hong Kong, the heightening US-China trade war, and the ongoing riots across America is giving a tough time for traders of the pair. However, the South African government is very much on track to reopen its economies, the optimism there is giving bears a little support. The South African rand is rallying ahead of the release of the Manufacturing PMI and the country’s total vehicle sales reports scheduled to be released later today. Last week, the South African rand lost its gaining momentum against the US dollar thanks to the mixed results from the country’s private sector credit report and trade balance for April. The South African trade balance collapsed from ZAR23.94 billion to an alarming ZAR-35.02 billion. Investors are hoping that those figures would recover along with the reopening of its economy.

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USDRUB

The Russian ruble had a great run last month against the US dollar despite the massive economic hurdles faced by Russia. Bearish investors are hoping that June could be positive for them as well. Looking at last month’s rally, data from the Moscow Stock Exchange shows that the Russian ruble strengthened by more than 6% against the US dollar. The allowed the 50-day moving average to curve and has revived the hopes of bearish investors to force it even lower towards the 200-day moving average. Looking at Russia’s economy, it appears that’s it’s entering a deeper economic slump than expected. However, investors remain hopeful as it’s not as deep as other hard struck countries like Brazil, Spain, and Italy. The Russian gross domestic product is expected to drop by about 5% this 2020 thanks to the pandemic. Experts believe that the pandemic will cut off about 3.3% of Moscow’s growth rate which is already lackluster.

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USDCHF

The Swiss franc is forcing the US dollar lower and the pair is currently seen testing a crucial support area. Is if the pair actually breaks through it, it has the potential to force the pair even lower in the days to come. It appears that the odds aren’t still working in favor of bullish investors and the 50-day moving average is seen consistently trading lower against the 200-day moving average. Bears are aggressively betting on a downward trajectory thanks to the trade tensions that are raising the safe-haven appeal of the Swiss franc even brighter than the US dollar. Looking at it, the US dollar looks less attractive despite being a safe-haven currency thanks to the political turmoil that’s ahead of the United States. First, the still ongoing trade tension between the Washington and Beijing that’s further bolstered by the unrest in Hong Kong. The second one is the riots and the protests that are taking place at several US states which has resulted in looting and destruction.

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USDINR

The better than expected gross domestic report from India has boosted the Indian rupee against the US dollar last sessions. However, its gains today aren’t as big thanks to the weaker than projected results from the Nikkei Markit Manufacturing PMI results that were published earlier this Monday. Despite that, the pair is widely projected to maintain its bearish trend as the Indian economy continues to improve. Looking at the manufacturing PMI, its seen that even though it failed to meet projections, it still improved from 27.4% prior to about 30.8% in May. And as for tomorrow, the Nikkei Services PMI for May is projected to climb from 5.4% to about 23.0%. Bearish investors are working to force the USDINR to take a big U-turn. This will also cause the 50-day moving average to crash and fall near the 200-day moving average. If the Indian rupee continues to appreciate, the pair should reach its support levels just in the first half of the month.

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