Charts and Market Updates February 05, 2020

Charts and Market Updates February 05, 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!

EURGBP

The British pound is expected to bring the bloc’s single lower in the foreign exchange scene. The pair has constantly struggled to break the horizontal trend. However, the United Kingdom’s pound sterling is widely believed to strengthen thanks to the gradual improvements from its economy and will use the uncertainties regarding the eurozone’s health as an opening to floor the EURGBP pair lower to its support levels. Bears are believed to rely on economic results as the United Kingdom is seen pumping out commendable figures from its economy. Just yesterday, Britain’s construction PMI for January rose from 44.4% to 48.4%, impressively jumping 4% and topping expectations of 46.6% improvement.  However, the concerns regarding whether the United Kingdom will get an appropriate deal with the European Union are still heavily weighing on the British pound, making it harder for it to hold on to its downward momentum.

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EURTRY

The recent discouraging results from the eurozone’s economies are pressuring the single currency in sessions. However, despite the contraction, the euro is believed to overcome it and pull the Turkish lira even higher. As the Turkish Central Bank remains dovish, the Turkish lira will also remain weak in spite of the good results produced by the country’s economy. Late last month, the Central Bank of Turkey held on to its dovish view on inflation and gave away suggestions that it was willing to give out more rate cuts in the coming months. Turkish Central Bank Governor Murat Uysal said during a news conference in Ankara that the country’s inflation is still at a moderate pace thanks to the gradual improvements from local demand conditions, producer prices, and the Turkish lira’s performance. The potential rate cuts are worrying investors thus preventing EURTRY bears from gaining momentum in the foreign exchange market.

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USDSEK

The US Dollar recently stumbled against the Swedish krona in sessions following the dull results from the American economy reported yesterday. However, as the deadly SARS-like virus, the novel coronavirus, continues to spread across the globe, the greenback is widely expected in the forex market to strengthen and hold its bullish momentum. The pair is expected to reach its resistance by the middle half of February. That would mean that the strong rebound of the Swedish manufacturing PMI will have a lesser impact on the Swedish krona’s strength. Earlier this week, the official results from the January Swedish manufacturing purchasing managers’ index showed an applaudable comeback from 47.7% prior to 51.5%, making a big leap and overtaking forecasts of 47.6% contraction. If the safe-haven appeal of the US dollar didn’t shine through, that would have given bears the upper hand. But, unfortunately, that wasn’t the case.

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USDNOK

After plummeting in the last month of 2019, the USDNOK has finally made a strong and successful comeback. And the safe-haven appeal of the US dollar is the most likely source of strength of bulls. The pair is believed to climb its resistance by the latter half of the month as the greenback receives a boost from the novel coronavirus that originated from Wuhan, China. Looking at it, the mixed results from the Norwegian economy are pressuring the krone which doesn’t support it from preventing the USDNOK pair from climbing higher. In fact, the slight drop in Norway’s unemployment rate is the only positive result that came from the country’s economic activities. This opens the floor for the greenback to advance. Just yesterday, the United States Census Bureau released the official data from the country’s factory orders showing that it grew from -1.2% to 1.8% on a month-over-month basis, exceeding projections of a 1.2% climb.

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