Daily Market Charts and Analysis October 06, 2020

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

USDRON

JOLTs job openings are projected to be the key driver for US dollar pairs near-term, and it looks like it’s going well. Investors are expecting the figure to rise from 6.618M in August, which could be a good sign following the relatively disappointing nonfarm payroll report from last week. If the US manages to pull this off, it could only benefit the US dollar near-term especially against emerging markets like Romania. Both US President Donald Trump and Romanian Prime Minister Ludovic Orban tested positive for the coronavirus, but the former leader’s return is projected to prop up the greenback, especially as the number of new infection cases in Romania continues to worry markets after it saw a record 2,343 new cases on Friday alone. The pair’s 50-day moving average has been curving upward toward the hovering 200-day moving average, showing that the pair might be preparing for the bulls to take over soon.

EURNOK

Surveys claim that even though Norway’s economic contraction will be less severe this year than it was initially projected, its economy will have to take years before it manages to recover back to pre-coronavirus levels. Moreover, it looks like Norway’s oil industry is in danger. Its biggest economic indicator is projected to suffer after six Norwegian offshore oil and gas fields closed on Monday with more workers joining a strike over pay. The move is projected to cut Norway’s output capacity to 330.000 barrels per day or 8% of total production. Any escalation will indicate losses for its economy by the end of the year. The pair’s 50-day moving average just touched the 200-day moving average, showing that bullish traders are looking to return the pair to highs last seen in late August and early May. This could continue once the eurozone and the UK reach common ground on its trade agreements by the end of the year.

EURHUF

According to prominent consultants, virus experts, and medical practitioners in Hungary, they expect a catastrophic damage to the country’s economy soon. Predictions claim that the pandemic will reach a death toll of 12,500 lives with a peak sometime in November. About 200 workers were infected in a singular polyol plant today while the total recently hit 818 on a daily basis. The pair’s 50-day moving average continues to move upward and above its 200-day moving average, and it looks like it could only go up from here. The European Central Bank concluded that the eurozone has finally recovered its inflation rate to pre-coronavirus levels and only needs to retain it as such for the rest of the year. Average inflation targeting will be its best option to keep its currency afloat for the rest of the year, as well as a negotiated decision for Brexit, which will have to reach common ground or the eurozone economy would suffer in the longer-term.

EURRUB

Russia reassured its status as the country with the fourth-highest number of coronavirus cases on Monday after the government confirmed 10,888 new cases. Knowing that its health sector had expected the surge as early as September is projected to worry the market and drive sentiment toward the euro currency. Speaking of, the pair’s 50-day moving average is still peaking upwards as its 200-day moving average struggles to catch up. This shows a nearer-term bullish projection despite the stagnant day for European indicators on top of the European Union’s conflict with the United Kingdom. Russian oil is becoming increasingly risky, its relationship with Libya is becoming more uncertain, and the ruble has become weaker than ever – these factors would make it harder for its central bank to refrain from launching monetary easing and interest rate alterations which could only pull the ruble down against bigger currencies like euro.