Charts and Market Updates May 01, 2020

Charts and Market Updates May 01, 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!

USDRUB

Although the Federal Reserve is working hard to maintain the American economy, the US still wound up seeing lower GDP quarter-over-quarter as per its announcement last Wednesday. Russia, on the other hand, announced that its own GDP was higher than expected for March, year-over-year. Moreover, it retained its central bank reserves for the American dollar as it is. Even with an expected 5.5% primary budget balance deficit this year, the Russian ruble is expected to see gains against the greenback as more experts believe that despite its oil production cut, a better harvest season for grains and sustained demand for food around the world could provide Russia with leverage against financial trouble should the coronavirus cause an even deeper downfall than imagined. This increase is near-term, of course, because the country is still expected to see at least a 10% decrease in Russian GDP this year as the Fed continues its aggressive movements.

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USDCHF

Switzerland is one of the European countries beginning to ease their lockdown measures, generating a little more economic stimulus since early March. It met a small resurgence in new cases in the country between April 25 and April 29, which showed that the country might close down again by June. Nonetheless, the Swiss franc will retain its role as a safe haven in the forex market as the world remains uncertain of the future brought by the coronavirus. This is further proven by this week’s failing figures in the United States such as falling employment benefits, increasing jobless claims, and plummeting pending home sales month-over-month. Until the world meets a definite development, health-wise, against the coronavirus, the safe haven is set to see highs in the next coming months at least until next year even as the Federal Reserve continues to take action against its economic effect in the country.

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USDCZK

The market is generally preparing for the world to go back to its economic life before the coronavirus, prepping the Czech koruna US dollar pair to sink back into its previous resistance levels. While the Federal Reserve keeps its 0.00% to 0.25% interest rates intact, investors are expecting Czech Republic’s central bank to cut its own benchmark rate in the next coming months. Meanwhile, analysts expect the country to see its economy drop by up to 11%, which started with dropping demand for new apartments in Prague by half after mid-March. In the US, the Federal Reserve expanded its $600 billion lending program for struggling businesses yesterday. Eligibility now stretched through businesses with 15,000 employees, up from 10,000. Until the program sees obvious results in its economy, the USDCZK pair will keep sinking down to its previous pattern last seen at the end of March 2020.

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EURGBP

The UK is on course to suffer the highest coronavirus death toll in all of Europe, but the region is still optimistic over the possibility of striking a trade deal with the EU before the end of the year. While the discussion’s path remains tentative, the EURGBP pair will keep inching down to its previous resistance level as long as the UK keeps seeing better results than the European Union. Namely, investors are still panicking over the EU’s 11% slump in GDP before the bloc could make it through half the year. This was most likely why some European countries chose to ease their lockdowns, hoping to reopen nationwide economies by the end of May. For now, the Pound sterling is expected to see gains against the euro, but when the latter sees heavier positive economic results without more coronavirus deaths this year, it could see itself strengthen not only against the UK but also throughout the foreign exchange platform.

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