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The Hungarian forint is looking to take advantage of the ongoing dilemma faced by the bloc to overpower the beloved single currency in sessions. Bears are looking to drag the pair lower to its resistance by the middle half of the month as euro investors worry about the impact of the deadly coronavirus to the eurozone’s economies. The Hungarian forint continues to thrive against the euro despite the contraction recorded in Hungary’s manufacturing PMI for the month of February. Looking at it, bears aren’t actually relying on the performance of the Hungarian economy. Because if that would be the case, it would mean trouble for the Hungarian forint as most of the recently released data from the country show contraction or worsening conditions. And if economic activities were the only criteria, the euro should have had the upper hand as most results from the bloc recently show improvements in the region.
The pair felt a massive jolt on the latter half of the month of February which resulted in a strong upward swing for the EURRUB pair. The reason? The concerns of the market about the coronavirus in China, Russia’s closest neighbor and the possibility that it could spread in the country if not prevented or contained. Bears held a firm grip on the pair’s direction for months, forming a steep pattern that was broken by bulls in recent sessions. To make matters even sweeter for bulls, the beloved single currency is also receiving support from the recent improvements recorded from the eurozone’s economy. In fact, the economic reports from the bloc outweigh the improvements reported from Moscow, making it very difficult for the bears to break the pattern. However, a question that now circulates around the pair is whether it will crash again once it reaches its resistance by the middle part of the month.
The eurozone’s single currency is looking to pull the EURPLN pair lower despite the ongoing cases of COVID-19 in the European region which triggers the fears of investors. Yesterday, the pair is seen down momentarily as Central European currencies rebound as a response to the rising hopes that central banks from the region will take action to deal with the impact of COVID-19. However, just today, bulls are seen regaining their composures immediately and preventing the pair from gaining bearish momentum. Another factor that contributes to the Polish zloty’s increasing weakness is the economic growth of Ukraine which poses trouble for Poland. Looking at it, a good chunk of Poland’s GDP and labor force are filled in by Ukrainians who are migrating to Poland. And recently, Germany loosened its immigration regulations which could cause Ukrainian immigration to slow down and weigh on the GDP and currency of Poland.
The Turkish lira is in dire trouble against the bloc’s euro as the tension in the Middle East, particularly in Turkey heightens and continues to weigh on the performance of the lira. Bulls are expected to force the EURTRY pair higher to its resistance level before the start of the second half of March. Looking at it, the Turkish lira is facing a double whammy of problems – the intense conflict in Syria and the spread of the deadly Wuhan originated virus in the Middle East. Bears lost the strength after Turkish troops in neighboring Syria died late last week while fighting the troops of Syrian President Basher Assad. Ankara immediately struck back and hit military targets from Syria, which then prompted a controversial emergency call between the Turkish President Recep Tayyip Erdogan and his counterpart in Russia, President Vladimir Putin. And as the situation gets worse, Turkey even opens its borders for refugees seeking shelter in Europe.