Good day traders! Check now the most recent charts and market updates for today’s session. Learn more about analysis and be updated on the current happenings in the market!
EURCAD
Oil-linked economies slipped against their counterparts today, effectively pulling down the loonie. The Canadian dollar is one of the worst performers in the financial markets today alongside the Norwegian crown. However, the euro is suffering just as much. The European Union is suffering. Investors have come to realize the necessity of an increase in borrowing money to fund their business sector. Crude oil futures prices fell to zero on Monday. This is due to barrel prices expiring for May. Oil futures are settling at -$37.63 on the same day due to an overflow in supply from the coronavirus shutdown. The shutdown eliminated the need for such commodity.
While the loonie should perform better than riskier assets, it wouldn’t do much against the euro short term. Investors also expect a better stimulus package from the EU to help inch the euro up, as well. For now, the market is idly waiting for the OPEC deal to take effect in oil-dependent markets in the coming months.
NZDJPY
The NZDJPY pair might soon see its April 16 low to push confidence into bearish markets today, which in turn could extend to an even lower low on March 23 at 61.77. The kiwi is considered a safe haven at dangerous times such as today. However, it’s still slumping against most currencies, most especially JPY. However, the pair’s main driver isn’t exactly from each other.
Economists speculate that the Australian economy will fare better than its cousin as it recovers from the coronavirus. This was worrying for the markets, considering that Australia just faced its worst downturn since the 1930s Depression. In terms of possible fiscal packages, the Reserve Bank of New Zealand governor Adrian Orr decided that he’s more dovish when compared to the corresponding Australian representative Philippe Lowe. For now, investors are looking forward to a possible economic recovery from down under while NZ is just getting started.
GBPNOK
Oil entered the center stage as the sector most impacted by restrictions from the coronavirus. It is pulling its dependent countries down the drain with it. Although the stabilization on oil prices should nudge the Norwegian krone up a bit against some of its rivals, the currency should see slumps against safe-havens. But here’s the thing: the British pound is anything but that – in fact, the UK government is under constant pressure over how the coronavirus will affect its now independent country.
Investors fear that its refusal to extend a possible trade deal with the EU will affect its power, driving high volatility for the currency across the market. GBP is expected to climb higher than NOK in the short term because some reports claim that the UK is about to trial a potential coronavirus vaccine on volunteers this week. This one good news could set the country up not against its safer opposites but some of its weakest.
GBPCAD
Although the Canadian dollar is expected to be one of today’s weakest currencies, it’s still considered to perform better than the British pound. The UK government is refusing to extend a possible trade deal with the EU. This is reigniting fears of high volatility for its currency. This could lead to underperformance for the pound even across its other counterparts.
Investors will most likely divert from the currency to avoid risk as the impact of the coronavirus on the global economy remains as the main driver for the financial markets. While the UK is under constant pressure, post-Brexit, it announced a much higher-than-expected employment change and a lower claimant court change figure for February and March, respectively. Meanwhile, Canada is waiting for positive results on the recent OPEC agreement to stimulate its economy.
