Charts and Market Updates June 03, 2020

Charts and Market Updates June 03, 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!

USDBRL

Brazil’s recent disappointing announcement of its Q1 2020 GDP figures will drive the real down against its greenback counterpart in the near-term while President Donald Trump is in conflict with the Chinese. USDBRL has been on a push and pull when it comes to emerging market currencies with the US dollar experiencing drastic sell-off for the past few weeks, and it looks like the nationwide protests are going to drive it down even further. Short-term, markets are going to see a decline for the US against Brazil this week, but it could potentially snap to selling exhaustion within two weeks to its previous resistance levels. Once the pair meets this standard at least until the end of this month, it’s expected to break down again if both the protests and the US-China conflict continue through the months. Nevertheless, if they do break above the 5.40 Real level, USD might reach towards the 5.60 level to surge through 6.00.

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USDRON

The US dollar is having trouble with its currency selling after nationwide protests and looting triggered a sell-off for the greenback for the past week, including against the Romanian Leu. Meanwhile, the Central Bank of Brazil’s last-minute interest rate decision last Friday, the RON might see its value slump against the USD near-term. The bank broke down its interest rates by 25 basis points, down to 1.75%, which usually signals a weaker economy. However, this was set to be good for its economy eventually, since the decrease is only a matter of time after other central banks were left with no room for lowering rates. Because of this, the US dollar might face a small increase in the next couple of days, but markets anticipate it to sell back down. Moreover, if these nationwide riots continue through months to disrupt economic stimulus, these figures might even slump to figures seen in November of last year.

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EURNOK

The Euro is gearing up for a full week of gains against major currencies as its alternatives experience worse figures than its own economy. As more Europea n countries open for business, its economy is expected to see higher than expected figures by the end of the year; this shines a light into the euro currency. The EU Recovery Fund, which involves 750 billion euros, is rendering in the eurozone economy as mitigation for the damage brought by the pandemic. This fund is raking through the bloc’s fiscal architecture, and it’s expected to see results in the coming months. This could represent a major step towards better policy coordination in the bloc. Rising uncertainty over other economies increases the appreciation for the Euro. Although the oil-sensitive Norwegian krone is also set to see gains following more demand for the commodity with reopening transportation access worldwide, investors are expected to take advantage of the euro’s current appeal.

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EURHUF

Positive European figures for May will boost the single currency against most of its rival near-term, especially against Hungary. The euro’s rally is on its sixth day after the eurozone composite PMI reported an improvement in May, which is expected to be in investors’ watchlist for the next couple months to assess where the economy’s recovery is going. The increase will also be brought by the European Commission’s announcement that it will issue a 750-billion euro fund to help the bloc’s economy float through the pandemic. The European Central Bank is also set to issue another monetary policy decision this week with markets waiting for a possible increase to its Pandemic Emergency Purchase Program to take the blow of the bloc’s debt because of the coronavirus. Meanwhile, Hungary’s year-on-year PPI was predictably slow for the month of April. The figure slumped from 4.3% in 2019 to 3.7% this year.

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