News – Page 24 – The Plot

September 28
2020

Chinese Yuan Looks to Test 52-Week High as PBoC Pumps More Liquidity

The Chinese yuan paused its rally last week after touching a 52-week high of 6.75 against the US dollar. The yuan is looking to restart its push against the greenback to kick off the trading week, driven by additional liquidity in the banking system and a recovering economy. Can the yuan maintain its upward trajectory? On Monday, the People’s Bank of China (PBoC) announced that it would inject $5.86 billion into the Chinese market […]

September 28
2020

AUD/USD Touched 0.7010. Are the Bears Done?

The Australian versus the US dollar currency pair seems to be in bearish hands. Are the bulls anywhere near? Long-term perspective The appreciation from the 0.5701 low climbed to as high as 0.7413. From there, it retraced under the 0.7320 firm resistance area, which rendered the price-action as a false break. On September 9, a bullish engulfing was printed after the price was repelled by 0.7191. However, the facts that the pattern materialized after a false […]

September 26
2020

Risk Aversion Helped Greenback End Week Strongest

The US dollar ended the trading week as the strongest currency on the Forex market thanks to risk aversion. The Australian and New Zealand dollars were the weakest due to the outlook for monetary easing from their respective central banks. The greenback started the week strong due to risk aversions caused by the rising number of new COVID-19 cases around the world, concerns about the global economic recovery, political uncertainty associated with the upcoming presidential election in the United […]

September 25
2020

Euro Falls to 2-Month Lows As Investors Remain Risk Averse

The euro today fell to 2-month lows against the US dollar driven by negative investor sentiment as coronavirus cases in Europe and across the world continue to rise. The greenback’s rally also fueled the EUR/USD currency pair’s decline as investors piled into the world’s only reserve currency despite the looming US elections. The EUR/USD currency pair today fell from a high of 1.1684 in the early Frankfurt session to a low of 1.1612 in the American market and was slightly […]

September 25
2020

USD/MXN Rises As Mexican Central Bank Cuts Interest Rates Again

The Mexican peso is struggling to find support against several major currency rivals after the central bank cut interest rates for the 11th consecutive month. The Mexican economy has been slumping as the country fails to contain the coronavirus pandemic, with the number of new infections rising thousands per day. Despite the peso making gains this past summer, it has been one of the worst-performing Latin American currencies this year. […]

September 25
2020

The Great Britain Pound Drops Despite Positive News Headlines

The Great Britain pound was extremely weak today, falling against all other major currencies, even the Australian and New Zealand dollars, which were recovering after the losses they have posted earlier this week. Analysts say, though, that the gains of the Australian and New Zealand currencies were just a result of a short-covering rally, which is not likely to last long. As for the sterling, it performed poorly this week, […]

September 25
2020

Bulls Back on Track on USD/JPY from 104.00?

The US dollar versus the Japanese yen currency pair seems to have recovered, as it oscillates above the 105.09 level. Should the bulls buy it!? Long-term perspective The fall from the 111.71 high had given the bears a good opportunity, as the series of lower highs and lower lows suggests. So, they had taken their chance and, driven by conviction, crafted the 104.00 low. This is their second attempt to establish their […]

September 24
2020

Norges Bank Won’t Hike Interest Rates for Years, Krone Flat

Norway’s central bank signaled today that it is planning to keep interest rates at the current record low levels for at least a couple more years. The Norwegian krone weakened as a result of the announcement but has rebounded afterward and is now heading to end the session about flat. As was widely expected, the Norges Bank kept the policy rate (its key interest rate) at zero, saying that “he policy rate will […]

September 24
2020

Turkish Lira Gains After Surprise Interest Rate Hike

The Turkish central bank surprised markets today, performing an unexpected interest rate hike. The Turkish lira rallied as a result. The Central Bank of the Republic of Turkey raised its policy rate (one-week repo auction rate) from 8.25% to 10.25%. That was a total surprise to analysts as most of them were expecting the central bank to keep rates unchanged. And even those, who believed that a hike is possible, did not anticipate […]

September 24
2020

Pound Trades Sideways Against the Dollar, Later Edges Higher

The British pound today traded sideways against the dollar alternating between losses and gains before rallying higher to post gains amid hopes for further UK stimulus measures. The GBP/USD currency pair today rallied to its daily highs after the Chancellor of the Exchequer unveiled measures to directly support British workers. The GBP/USD currency pair today fell to a low of 1.2690 in the late Asian session before rallying to a high of 1.2780 in the mid-London market […]