Charts and Market Updates February 07, 2020

Charts and Market Updates February 07, 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!

EURAUD

Investors are in for a wild ride on the EURAUD pair. After sharply rising and falling in the past sessions, the euro is expected to rise again against the Australian dollar. Bulls are taking the opportunity that came from the recent speech of the Reserve Bank of Australia Governor, Philip Lowe, to gain against the Aussie. Bears fear that the worsening sentiment about the country’s economy, which is greatly affected by climate change and the coronavirus, would eventually lead to more stimulus from the reserve bank. According to Lowe, the coronavirus will likely have a more negative impact than the SARS virus on the country’s economy and that the Australian dollar is at a years-long low due to the rate cut. However, looking at the bigger picture, the bloc’s euro is also weakening due to the bad results from Berlin’s economy. This means that the strongest from both of the weakening currencies will prevail, and in this case, the euro gets the upper hand.

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EURUSD

As the US dollar continues to strengthen, EURUSD bulls remain in trouble in the foreign exchange scene. The deadly novel coronavirus is helping the greenback rally sessions, giving it strength to drag down major currencies including safe-haven assets. The US dollar is seen thriving in the forex market ahead of the payroll report that is due later today. Bears are waiting for more good news as the US nonfarm payroll is widely expected to deliver promising figures for the first month of the new decade. If that will be the case, the EURUSD could take a steep plunge, reaching September 2019 lows. On top of the buck’s strength, the concerning contraction in Germany’s factory orders report is pressuring the euro in sessions. It is already widely known that the single currency is greatly affected by Berlin’s economic activity. Later today, the German trade balance report is scheduled to come out and experts expect it to contract for the month of December.

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USDJPY

The US dollar reigns supreme against the Japanese yen on the USDJPY pair, a matchup of both safe-haven assets. However, as of writing, the Japanese yen is seen steadying against the US dollar, preventing it from running away with gains in Friday’s sessions. Unfortunately for bears, the pair is projected to continue its upward momentum and is expected to reach its resistance by the middle half of the month. The novel coronavirus continues to reinforce the buck in the forex market. The negative results from the Japanese economy aren’t also helping the yen get back up to its feet against the buck. Later today, the United States Bureau of Labor Statistics is scheduled to release the January nonfarm payroll which is expected to show a promising comeback from its performance in December. If the US dollar actually produces stronger results, the US dollar would receive a much-needed boost, allowing it to extend its rally against the Japanese yen.

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USDCHF

February isn’t working out that well for the Swiss franc in the forex market. The US dollar continues to floor the gas pedals against the franc, getting away with impressive gains in sessions. The pair has successfully recovered from the steep drops from the last few days of January. Apparently, the tolerance of investors to risk has increased and the encouraging efforts of the United States government to contain the novel coronavirus are lifting the US dollar in trading sessions. This means, despite the contraction in the US economy, the greenback will continue to gain in trading sessions. With that, the pair is believed to reach its resistance by the middle of the month. Meanwhile, the lackluster results from Switzerland’s economic activities, such as the procure.ch PMI and the annual retail sales figures from December, are also weighing on the Swiss franc, preventing it to recompose itself against the buck.

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