Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
In recent sessions, the British pound pulled a quick recovery against the euro. However, things aren’t looking pleasant for the precious sterling as bulls look to force the EURGBP pair upward to its resistance level once again. The British pound recovered last Friday after the string of drastic collaborative measures from central banks to stabilize the global financial market. Unfortunately for traders of the British pound, it recently reached 35-year lows against the greenback and has also hit its post-crisis lows against the beloved euro which emptied their confidence tanks. To make matters even worse for the pound, the looming recession in the United Kingdom has heavily weighed on its rally. Economists are very pessimistic about their forecasts for Britain’s economy, projecting an inevitable recession this 2020. Efforts from Britain’s government, such as the £320 billion bailout plan, fail to lift the mood for the pound sterling.
Despite being on the defensive against the US dollar, the Japanese yen is seen prevailing against the euro. The 50-day moving average just recently slipped below the 200-day moving average, suggesting a bearish run for the near-term outlook of the EURJPY pair. The safe-haven appeal of the Japanese yen is working well in the bloc as just recently, the region has been declared as the new epicenter of the deadly COVID-19. Major industries in the eurozone are heavily affected thus raising fears of an upcoming recession for the pact. In fact, Italy just recently overtook mainland China in the devastating death toll. France and Spain aren’t also spared by the virus and both countries have seen spikes in the number of confirmed cases. Experts are concerned and are saying that the eurozone needs a new scale of stimulus to support it against the virus. Some critics are also calling out the European Central Bank, urging it that credits aren’t what the bloc needs now.
The US dollar started the week off in green territories against the Canadian dollar. Fresh drops in the global stock market and the decline of oil prices are weighing on the beloved loonie in the foreign exchange market. Another factor that triggered the immediate recovery of the buck is the doubts about Washington’s efforts. Experts and investors are concerned about whether the US government’s measures to lessen the impact of the coronavirus pandemic. In previous sessions, the USDCAD pair rallied and reached levels last seen in early 2016. The greenback has seen a strong surge as investors opt to choose it amongst other major currencies like the Canadian dollar as the global economy rapidly hurdles into an unfortunate recession. Payrolls and other economic activities in both the United States and Canada are expected to produce weak and alarming figures for the months of February and March due to the impact of the pandemic.
The antipodean New Zealand dollar is on its back foot against the Canadian loonie in the foreign exchange scene. The 200-day moving average finally advanced against the 50-day moving average, indicating a bearish direction for the NZDCAD pair. Just recently, the Reserve Bank of New Zealand officially announced that it will be buying domestic bonds worth NZ$30 billion to support the local economy against the massive and devastating impact of the deadly pandemic. It’s estimated that the quantitative easing program of the reserve bank is worth 10% of the gross domestic product of the country. Official sources from New Zealand show that the most affected sectors in the country are tourism and agriculture. Also, the impact of COVID-19 on the Chinese economy is weighing on the minds of bulls, preventing them from making a successful recovery against the Canadian dollar in the foreign exchange market.