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The Hong Kong dollar’s downward momentum against the US dollar halted slowed down at the beginning of the year. Traders are facing great turbulence thanks to the coronavirus which has finally and unfortunately breached the 2,000 mark in the death toll. The Hong Kong economy is still taking hits from the anti-Beijing unrest, but the coronavirus outbreak added more to the already intense pressure that the country is going through. Just recently, it was reported that Hong Kong’s unemployment rate inched up from 3.3% to 3.4%, straining the strength of the HKD. And yesterday, the US economy showed impeccable performance in the NY empire state manufacturing index and the TIC net long-term transactions for December, delighting investors with the results. This gave the USD the strength to cause the USDHKD pair to steady and potentially force it to a sideways trend.
The Singapore dollar is on the defensive against the US dollar, but as of writing, it’s able to counter and prevent the greenback from another steep rally. Still, the USDSGD pair is widely expected to climb to its resistance as the precious US dollar continues to strengthen. The impressive results produced by the Singaporean economy is working well in favor of the SGD. Just recently, it was reported that Singapore’s gross domestic product growth for both quarter-on-quarter and year-over-year basis produced solid growth for the final quarter of 2019. Statistics Singapore revealed that the country’s quarterly GDP climbed from 0.1% in the third quarter to 0.6%, delighting investors and experts who forecasted that it would only climb to 0.1%. But despite that progress, the US dollar remains formidable in sessions and is continuing to receive support from bulls who wish to push it towards its resistance.
An uphill climb is expected for the USDCNH pair amid the outbreak of the fatal coronavirus. Investors are eyeing the safe-haven asset, US dollar, during this time of trouble for China. However, the question about whether the pair would actually break its resistance is highly uncertain. It’s widely suggested that the pair won’t climb that high as the Chinese economy is forecasted to recover once the virus is contained and fully dealt with. Beijing is exerting more effort to pacifying investors and convince them that the situation is being handled properly, however, this leaves the floor open for the greenback to maneuver against it. The effort of the Chinese government is slightly ignored as investors worry about the impact of the virus on the country and the rising death toll. And amidst the gloomy sentiment, the Chinese economic growth forecast was adjusted from 5.8% to 5.2% according to reports.
The US dollar remains determined to bring the USDDKK higher in sessions. The pair now trades on levels last seen in April 2017 and its looking reach even higher grounds. Bulls are utilizing the improving sentiment about the US economy to fuel the US dollar even higher against the Danish Krone. The recent improvement in the NY Empire State manufacturing index reportedly rose from 4.80% to an outstanding 12.90% in the month of February, exceeding forecasts of growth to only 5.00%. Meanwhile, the US Department of the Treasury reported a massive hike in the country’s TIC net long-term transactions, showing figures leap from $27.1 billion to a colossal $85.6 billion in December 2019. Of course, investors were thrilled as experts only projected improvement to $25.5 billion prior. On the other hand, bears appear to be disappointed with the recent results produced by the Danish economy in its GDP and CPI reports.