Charts and Market Updates August 31, 2020

Charts and Market Updates August 31, 2020

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!

USDCZK

It’s official: the United States is stuck in its worst recession since the Great Depression. Selling pressure is projected to pull the dollar down against most markets near term due to a series of pessimistic announcements from the government and its central bank, the Federal Reserve, for the past week or so. Even as its Pandemic Emergency Unemployment Compensation and the Extended Benefits program is expected to continue, it won’t be able to help enough of the economy against initial jobless claims figures, which had also been finding itself go back to the 1 million-mark almost every week. It had reached its second time at that level since it began declining in the earlier days of the pandemic, proving that its economy isn’t doing as well as it anticipated weeks prior. Its consumer confidence index for August also fell for the second month in August to 84.8, which is 36% lower since the recession began in the first few months this year.

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CADJPY 

Wall Street is expecting a series of economic data from Japan, and it doesn’t look optimistic. As the suffering Japanese economy braces itself for its Prime Minister’s retirement in the most crucial period in history, its unemployment rate is expected to lift for the month of July. When compared against the previous record seen in June, it’s expected to step up by 0.2% from 3.0% in the previous month to 2.8%. Job applications on the other hand are expected to fall for July. The ration between job applications and jobs is expected to decrease once again for the month of July from 1.11 to 1.08, which could lead to less stimulus in the long run. Capital spending for the second quarter is supposedly good news for the yen, which is expected to lift from 0.1% seen in Q2 2019 to 4.3% this year, but it will barely shift the market towards the typically safe haven yen against the Canadian loonie as it continues its path as one of the fastest-growing economies post-Covid. 

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USDRON

Romania’s economy is projected to shrink by 3.8% by the end of the year. But then, markets also expect it to grow back to 4.9% in 2021. Considering that the US economy is experiencing its worst recession since the Great Depression, this slump isn’t going to be much. The coronavirus count in the United States approaches 6 million, several economic stimuli are expected to surge near-term. So far, its death toll stands at 180,000. That’s considering that its jobless claims are still at 1 million and its consumer confidence fell for the second consecutive time in August. In fact, the figure had seen more than a 36% decline in its consumer confidence index to 84.8. The rising stock market, risk sentiment, and the upcoming report from the Federal Open Market Committee to be announced later today will be the main drivers for this pair. 

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AUDNZD

Markets are waiting for the Australian Industry Group Manufacturing index to announce its August levels. If the figure records a higher figure in comparison to the 53.5 points reported in July, this could be its fifth consecutive increase. One of its main drivers, manufacturing, is projected to inch lower from 54.0 to 53.9. However, New Zealand’s trading figures are keeping investors at the edge of their seats. For the second quarter, trade volumes for imports and exports are expected to fall to -0.9%, way down in comparison to the previous quarter’s 0.5%. Prices in trade exports are also expected to wound the kiwi dollar with a fall from -0.2% to -1.0% for the second quarter. Imports prices will also fall from 0.5% to -0.9%. The series of pessimism will bring the AUDNZD pair into the bear market even as Australia continues to suffer from coronavirus case surges in key provinces in the region such as Victoria and Melbourne.

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