Daily Market Charts and Analysis May 05, 2020

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

EURTRY

The euro to Turkish lira pair has continuously advanced in the trading sessions. As of today, the pair has steadied, but things aren’t to last for bearish investors as the pair is widely projected to climb to its resistance eventually. The pair is currently trading on ranges last seen in August 2018, during the Turkish financial crisis wherein the currency was pummeled in the foreign exchange market.  Yesterday, the Turkish lira received support from the better than expected monthly consumer price index for April which reportedly rose from 0.57% to around 0.85% amidst the pandemic. Another factor why the pair steadied is the news about the eurozone’s manufacturing PMI which also reportedly collapsed in April thanks to the lockdowns that suspended productions. However, as countries in the eurozone plot their blueprints on how to reopen the economy, the Turkish lira may be in deep trouble as such a move would further reinforce the single currency.

GBPAUD

Due to the weaker-than-expected figures recently recorded by the British economy, the pound sterling to Australian dollar exchange rate’s bearish fate has been sealed. The pair is expected to drop to its support levels by the latter half of the month as things get sweeter for the Australian dollar. Earlier this month, the UK manufacturing PMI for April showed a drop from 47.8% to 32.6% because of lockdowns brought by the pandemic. The report supported the case of bearish investors. However, as of today, the pair slowed down following the recent decision of the Reserve Bank of Australia to leave its official interest rates unmoved as expected. The decision failed to support the run of the Australian dollar in the forex market. Aside from that, another factor that’s causing the Aussie’s rally to slow down is the impending tariff threat of the US President against mainland China, Australia’s biggest trading partner, for the mistake in handling the outbreak.

GBPCAD

The pair dipped yesterday as investors digest the manufacturing report from the United Kingdom issued earlier this month. The exchange rate is bound to contract and reach its support level in the coming sessions as the Canadian dollar gets support from the recent rebound of crude prices in the market. See, things are about to get better for the loonie as commodity experts project that a new bullish crude market is coming in soon. See, the underinvestment and the shut-ins in the crude market is bound to propel prices back upwards near to $30 eventually. However, the question of whether bears have enough strength to force the pair below its support still stands as the Canadian dollar is also feeling the tensions of the renewed tension between Washington and Beijing. Trade fears are slowing down the descent of the pair in the trading sessions, this could eventually lead to a sharp U-turn for the pair once it hits its resistance in the coming sessions.

USDDKK

As the Danish economy starts to function once again, the US dollar’s safe-haven appeal is no match for the Danish krone. The pair is anticipated to crash down to its support levels in the coming sessions as the positive news from Denmark strengthens the krone. A few weeks ago, Denmark has decided to make a bold move and gradually lift its lockdown restrictions amidst the impending threat of the coronavirus in the country. The move is initially paying off for the country as the lockdown lift has not resulted in another wave of COVID-19 infections according to local authorities. This gives the Danish krone an edge against the greenback that is currently feeling the pressure of the virus to the economy and the anti-lockdown unrest. Also, bullish investors are acting more cautiously following the tariff threats of the US President against China which could help dig a deeper economic slump that rivals the Great Depression.