Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
EURPLN
Both Poland and the eurozone are facing devastating crises. Daily growth of coronavirus cases in Poland had just surpassed 16,000, its highest record in history, while the Brexit deal is still in the abyss. The main determiner for the pair’s trend will be from eurozone banks. Credit conditions tightened for firms and consumers in Spain, the country with the second-highest cases in the eurozone. Restrictions have hit its tourism and services industry, while Germany and France similarly heightened their lending restrictions, as well. The new restrictions are projected to affect economic output in the long run. The pair’s 50-day moving average is still above its 200-day moving average, but it looks like the latter is going to catch up soon. This proves that the pair might be ready for a decline back to familiar levels last seen around May, when Covid-19 began spreading like wildfire into a full-blown pandemic.
EURSEK
Sweden had seen a dramatic downturn for its gross domestic product between April and June, when it saw an 8.6% contraction. Despite its lax response to the pandemic, it was still shallower than its European peers, such as Spain and Italy. Experts claim that the Swedish health system is approaching a critical point after it recorded 1,870 new coronavirus cases last week. But more economists are claiming that the country is well-positioned enough to continue its economic activity as it once was. Its sparse population and smaller local outbreaks are projected to benefit the Swedish economy and, consequently, its currency with it. The pair’s 50-day moving average is staying below its 200-day moving average, indicating that the pair is more likely to continue its stagnant trend with the bears in the near-term. Besides, it looks like the eurozone will have to deal with credit restrictions and Brexit tensions until the end of the year.
EURCZK
The Czech Republic now has the second-highest per capita death rate from coronavirus infections over seven days. Months after it was praised for its initial response to the pandemic, it has imposed a new curfew after having stepped up restrictions three times for the past two weeks alone. That said, the pair’s 50-day moving average has arched up way above its 200-day moving average, showing signs that bullish traders have been gaining momentum for the pair. Now that the Czech economy is projected to continue tightening its restrictions, its uncertainty will be the major factor of the pair’s downfall. This is considering that although Brexit talks might be in a stalemate, negotiations are expected to continue as more economists and trade experts pressure participating economies to reach a definite agreement by the end of the year. Any progress with these discussions will likely also influence the pair’s medium-term trend.
USDHUF
It’s the final week of the US Presidential Election campaign. Investors are projected to keep investing in dollars against the Hungarian forint after Hungary’s central bank kept its interest rate on a record low of 0.75% on Thursday last week. The International Monetary Fund also lowered its expectations for Hungary’s economic growth. The IMF now projects that its economy will contract by as much as 6.1% this year, and it will only manage to recover 3.9% by the end of 2021. This was a downgrade from its prior expectation of a 3.1% contraction in 2020 and a 4.2% growth in 2021. The pair’s 50-day moving average is quickly surging towards its 200-day moving average, showing that the bullish market is going to take advantage of the situation to lift the pair up to a consistently upward pattern. The market is also expecting good news towards fiscal stimulus as fiscal and economic aid for coronavirus-affected businesses in the US.
COMMENTS