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!
The Canadian dollar continues to floor the bloc’s beloved single currency in the forex scene. And the air just keeps getting bearish as the pair is widely expected to fall down to its support levels by the end of February. Looking at the bigger picture, the EURCAD pair is currently sitting on its 3-year lows, trading on levels last seen in April 2017. Investors are baffled on how deep the pair plunged just this month thanks to the weak results produced by the Eurozone’s economic activities. The euro will still remain on the defensive against the Canadian dollar as bears wait for further support from the upcoming economic reports from Canada. The core consumer price index and other CPI reports are all due to be released tomorrow. And forecasts suggest gradual improvements from the country’s economic performance. As for the euro, the case is opposite; scheduled reports due this week are expected to show contraction rather than improvement.
The British pound is in trouble against the Canadian dollar. Bears are once again rejoicing as the risk appetite for the Canadian dollar finally returns, giving it a much needed helping hand in sessions. The pair is projected to hit its support levels as the CAD gradually pulls the GBP lower in sessions. the increasing fear around coronavirus that originated from China is helping boost commodities such as oil prices, giving the Canadian dollar a lift along with it. Aside from that, scheduled reports from the Canadian economy are expected to show significant improvements that could help support the loonie in the forex scene. Investors are waiting for the Canadian manufacturing sales result from the month of December that is due today. The manufacturing sales report is widely expected to show improvement from -0.6% to 0.5%. Meanwhile, the country’s consumer price index figures are scheduled to be issues tomorrow, and the result is also expected to show improvement in the first month of 2020.
The EURBRL pair is expected to fall to its support levels by the end of the month. The Brazilian real is set to take advantage of the weakening euro and the poor sentiment in the bloc’s economies. The concerns of investors about the effects of the lethal Covid-19 virus to the global economy is pressuring the euro, causing it to underperform in the forex market. Meanwhile, scheduled reports from Germany, the bloc’s powerhouse, are expected to produce weak figures. Bears are preparing to pull the pair lower and prevent the single currency from regaining its composure. However, the discouraging figures produced by the Brazilian economy isn’t making it easy for the real in sessions. The question of whether the pair will surpass its support remains uncertain, however, a series of upcoming reports from the Brazilian economy have weak projections which could suggest that the pair would only bounce off its resistance by the end of the month.
The pound has weakened amid the clear lack of economic activities due to the recent comments of the British Prime Minister about Brexit. But fortunately for bulls, the GBPBRL remains on track to rally in sessions. The pair is still widely expected to continue its gradual upward momentum and reach its resistance by the end of the month. The Brexit-susceptible sterling’s strength has been drained after France gave Johnson’s remark a not-so-warm reception. On top of that, the French Foreign Minister Jean-Yves Le Drian said that it will be tough for the United Kingdom to strike a deal before the year ends. Meanwhile, the drastic results produced by the Brazilian economy is making things even complicated for Brazilian real. On Valentine’s Day, it was reported that the CFTC BRL speculative net positions dropped further from -23.6K to -32.2K and the IBC-Br Economic Activity for December remained unmoved at -0.27%.