Daily Market Charts and Analysis October 07, 2020

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

EURPLN

Thanks to the improving Polish economy, its currency is projected to lift against its bigger rivals like the relatively quiet euro. Bullish traders just barely managed to move the pair’s 50-day moving average above its 200-day moving average, but it looks like the bears are preparing to retaliate. The National Bank of Poland is projected to release its interest rate decision today, and markets concluded that rates are likely to retain its 0.1% levels, a level it had retained for months. Economists have also been increasingly optimistic over the Polish economy’s end-year contraction, notably with a new expectation to see gross domestic product shrinking by 3.5% instead of 4.6% as estimated prior. Core inflation also recently hit a two-decade high in July, a sign that its economy had already been improving despite the coronavirus and that it could possibly resist the negative effects of another wave of coronavirus infections in the country.

EURSEK

Sweden never implemented a shutdown for its national economy and went so far as to keep its primary schools and daycare centers open. The insistence on keeping establishments open has taken mixed signals both by investors and medical experts. And despite what looks like an approaching peak in infections, it looks like more banks have come to believe that it’s one of the rarest countries that could manage to suffer a milder recession than both the eurozone and the United States by the end of the year. The forecast calls for a 3.3% gross domestic product decline by the end of the year, notably smaller than the 8.3% slump expected in the eurozone. This is also smaller than what is forecasted for the UK, which is a 5.8% contraction by end-2020. As the pair’s 50-day moving average remains lower than its 200-day moving average, the bulls are still projected to pull the exchange back down to lows last seen in July.

EURCZK

The Czech Republic’s coronavirus situation is now among the worst in Europe, almost as severe as Spain. The country recorded its highest daily count at 3,793 new coronavirus cases last week, igniting an unprecedented emergency state after it initially reopened in the summer. The country’s new health minister Roman Prymula claimed that its daily infection rates have now been among the worst in the world as well, as it remains far higher than when the pandemic was at its peak. The lockdown will last at least 30 days, because according to experts, the situation has gone too far out of control to keep its gates open. Although the eurozone has been witnessing jumps infection cases in several economies as well, it looks like the euro’s safety will gain more attention in the near-term. The pair’s bullish traders seem to be fighting to keep the trend upwards as its 50-day moving average barely touches its 200-day moving average in high volatility.

USDHUF

Hungary’s industrial production has been recovering at a stronger pace than expected after it fell from two-digit to one-digit rates between May and August. However, it looks like the market’s outlook for manufacturing PMI will raise the stakes for forint investors. With the second wave of COVID taking over the country, its latest record showed that it had witnessed a drop below 50, signaling that activity had halted activity and even began to fall. Business confidence also remained in negative territory at -15 for three months to date. The pandemic has unfortunately been pulling the Hungarian forint’s 50-day moving average far below its stagnant 200-day moving average, but it looks like the pair could want to meet the wide U-shaped recovery back to July levels with risk aversion and the nearing presidential elections in the United States, despite having a relatively quiet day in its economic calendar today.