Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
EURSEK
After reaching its support level in the previous session, bulls were able to force a reversal and seize the momentum to recover their losses. The pair now has a bullish trajectory and signs say that it’s heading for its resistance in the first half of the month. As of writing, investors of the Swedish krona are causing the pair to steady as they wait for the upcoming consumer confidence, manufacturing confidence, and retail sales figures from Sweden scheduled today. Aside from those, bears are also hoping to see better than expected results in the Swedish gross domestic product report that is also scheduled to be released tomorrow. That would strengthen the Swedish krona and give a tough time for the euro. On the other hand, the main factor that is supporting the single currency is the recent news about the European Commission’s plan for the post-coronavirus recovery funds. According to reports, it will be worth a staggering 1.85 trillion euros.
EURCZK
Bears are looking to avoid another upward reversal from the pair and are determined to bring the pair lower towards its support. Unlike other currencies in the region, the Czech koruna has been significantly lagging behind in terms of performance against the euro. The main reason for its prior weakness is the negativity around Czech bonds. Earlier this month, the Czech Finance Ministry reportedly sold about 9.7 billion Czech korunas of three bonds, significantly lower than the previous sales. The Czech Republic has seen a huge spike in borrowing with the demand in the country’s debt market high following the previous rate cuts from the central bank. The main factor that will help the Czech koruna now is the news about the country reopening its economy and its borders. The rate of new cases and even deaths for the coronavirus in the Czech Republic has significantly declined, and now the country wants to return to normal.
USDHUF
Thanks to the recent decision of the National Bank of Hungary to leave its rates unchanged, the Hungarian forint gets stronger. The currency is looking to redeem itself against the beloved US dollar, and the renewed risk-on appetite in the global market is also helping it with that. The US dollar to Hungarian forint exchange rate should reach its support by the first half of June. Bearish investors of the pair are looking to force the 50-day moving average lower and get closer to the 200-day moving average. Earlier this week, the Hungarian central bank opted to leave its rates unmoved for this month and wait for the initial effects of the previous rate cuts. The move came after the bond purchases of the central bank started earlier this month which helped push down the debt yields causing the forint to stabilize and strength. The decision is also in line with the expectations of the majority of analysts and economists from Hungary.
USDMXN
The Mexican peso slightly retreats against the US dollar yesterday after a slight sense of risk-averse came into the market. However, as of today, the pair is seen steady as the US dollar immediately losses steam. Yesterday’s decline was rather modest, and the bias is still widely in favor of the Mexican peso. This means, that the pair is still expected to fall to its support level soon. Looking at the global market, the news from all over the world is receiving mixed receptions from traders and experts. Just recently, the Bank of Mexico issued its quarterly report. The Mexican central bank reportedly anticipates the country’s growth to come in at -4.6% this 2020 and a 4.1% recovery by the following year. Although the bank also adjusted its fourth quarter inflation forecasts to about 3.5% to just 3.2%. According to the report of the Mexican central bank, the balance of inflation risks is in the country is still rather uncertain.
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