Charts and Market Updates October 14, 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!

EURBRL

The positive results recorded by Brazil’s economy doesn’t do much to help the cause of the Brazilian real. It is believed that the trading pair’s prices would continue to climb up to its resistance level despite the growth shown by the Latin American country’s economy. The euro, on the other hand, isn’t fueled by technical results from the eurozone, rather, its strength primarily comes from the hopes that the EU will snatch a deal with the United Kingdom. Earlier today, the Eurostat reported that the August monthly industrial production activity of the bloc plunged from 5.0% to just 0.7%, falling slightly lower than prior estimates of 0.8%. Meanwhile, Spain’s economic activity has been stagnant as seen in the recent reports released earlier today too. The Spanish yearly CPI for September came in at -0.4% from -0.5%, just as expected prior while the monthly CPI climbed up to just 0.2% from 0.0%, as expected again.

GBPBRL

The improvements recorded by the British claimant count change and the average earnings index should propel the pound sterling against the Brazilian real in the trading sessions. As of writing, the pair is seen trading on negative territories, but the optimism from the news should turn the tides in favor of the UK pound. See, yesterday, the United Kingdom’s claimant count change report for September was released, showing an improvement from 73.7K to just about 28.0K, topping experts’ forecasts of an increase to 78.8K. Aside from that, the British average earnings index + bonus for August also showed a hike from -1.0% to just 0.0%, meaning there are good indications of personal income growth in Britain. On the other hand, the positive news from Brazil’s economy barely helps the real to get even with the British pound. Investors seem to be brushing off the positivity from the Brazilian service sector growth which recorded slight improvements in August.

RUBNOK

The Russian ruble manages to force the RUBNOK exchange rate to climb up this Wednesday. However, experts believe that the pair’s prices would ultimately head down in the coming days as it gets stuck on a tight downtrend. There isn’t much news from Norway’s economy, the most recent reports were from late last week and the results from those weren’t actually great. Statistics Norway reported that the core consumer price index of the country went down from 3.7% to 3.3%, falling even lower than prior projections of about 3.5%. meanwhile, the country’s monthly core inflation rate for September went up from -0.4% to 0.2%. Both currencies are faltering thanks to the uncertainties faced by the commodity market and crude oil prices, however, in their match up, it seems that the Norwegian krone has the upper hand as the Russian ruble is also met with tense fundamentals, mainly the political uncertainties bombarding Moscow.

USDBRL

Despite the headwinds faced by the greenback in the recent trading sessions, it appears that the Brazilian real still lacks the strength to take the safe-haven currency down. The pair’s prices are heading up towards the resistance level and should hit it by the first days of November. The US dollar is mainly fueled by stimulus deal hopes but the positive results reported today from the American economy help buoy the currency. Earlier today, it was reported that the US monthly producer price index for September went up from 0.3% to 0.4%, beating earlier forecasts of 0.2%. On the other hand, the Brazilian real failed to gather strength from the recently released Brazilian service sector growth which improved from -11.9% to about -10.0%, better than the initially estimated -10.7%. However, there are still problems ahead of the Brazilian real as bearish investors worry about the country’s finances and the lasting impact of the pandemic on its economy.