With the yen, yuan, and euro struggling to recover from the adverse economic impact of the ongoing global pandemic situation, the US dollar continues to look promising to investors. This despite the fact that President Trump’s administration is yet to come up with a plan to fuel a slowly recovering manufacturing sector and create more employment, even as the US national data pertaining to these are awaited.

Globally, the economy experienced an 11-year low during April this year, with some recovery starting mid of May that continued till the end of June.

The euro remains sidelined even as the European Union awaits data related to manufacturing, retail, trading, and unemployment from Germany. The yen yielded but recovered amid Japan’s speculated plan to announce a state of emergency in response to the pandemic. The pound showed a slight decline on Tuesday, owing to the ongoing Brexit issues. The yuan remained mostly unchanged despite political tensions between Beijing and Hong Kong.

Investors concerned with the trade deficit caused by President Trump’s stance against China, consider the move by the People’s Bank of China to reduce funding cost on small firms, a ray of hope. But in the wake of fresh military tensions with India and declining support from Pakistan, which faces a steep financial crisis in the near future, Chinese economic strategies are speculated to return only short-term advantages.

Most other currencies of the world, including the Australian dollar and the Swiss franc, did not perform as expected. Even with signs of recovery, investors are wary of a possible downward economic rebound if the US, China, and the EU fail to reduce their trust deficit with emerging economies such as India.

FOREX-safe haven currencies made a brilliant come back on Tuesday after a long time just because of the positive predictions about the stock values, which assuredly got a boost. These ventures are only possible because of the economic turnaround, which can be felt in this scenario. When British Prime Minister Boris Johnson announced enhancing the public spending, Sterling came under pressure.

On the other hand, the activities related to the housing market, which experienced a plunge during the pandemic, soon recovered in May. This brought into focus the optimistic data of home sales scenario. Contracts signed for the pending home sales increased by 44.3%, which was more than what was predicted by economists. Apart from that, the shares belonged to Wall Street also experienced a sudden increase of 14% in the Boeing part. This is due to the commencement of the series of flight tests that were long delayed of the 737 MAX, which was redesigned.

The dollar showed a steady climb to 107.59 yen, besides touching a three-week record of 107.885. Nevertheless, it was topped by its 100-day affecting average near that mark. The safe-haven Swiss franc relieved to 0.9511 per dollar as well as 1.0697 per euro. This is how the whole process went through in this pandemic situation.

The Singapore Exchange (SGX) made headlines over the stock market with their declaration of buying the stake of 80 percent, which does not belong to them on the BidFX platform of trading. On 29th June, Monday, they came forward with this venture, where they have decided to pay a massive amount of $128 million for capturing the profit gaining market of world trading. They believe that such a crucial decision would technically help in making their presence in the foreign exchange futures. Notably, they would also make the shares obtainable through an over-the-counter setting of the stock market.

From the prediction of the trading market, the potentiality of FX can be determined in the capability through which price discovery, transparency as well as liquidity will be the tools for the market participants to get benefited. This strategy would also help in regulating the benefits of both OTC and the futures trading that are listed over the market in a solo integrated setting.

Singapore is one of the major foreign exchange hubs, which is gaining popularity through the important activities of trading encouraged by development and instability in the currencies of G10 and Asia. To mark the chief growth of the recent quarter, BidFX Systems has made a record volume of trading. Behind this achievement, the involvement of the major clients like regional bankers, asset managers, as well as the prominent hedge funds, must be considered.

SGX’s chief strategy is to make an extensive range of assets available to investors worldwide. For the accomplishment of their venture, external borrowing will be used for financing the deal.

Overview

COVID 19 is taking a toll on the EUR/USD pair. On that note, today, the currency pair is struggling to recover itself. The last record says it is up from -0.1 to 1.1206. Fortunately, the currency pair is not ready to leave the field. They are still hooking on to the ground and are going to survive. According to the information, the recent figures are present to trigger away from the risk of the dollars. In fact, the odds are in favor of the dollars right now.

Restrictions for COVID 19

In the meantime, the Governor of Texas Greg Abbott has successfully restricted the opening of the state. The reason behind this strict decision is the increased number of COVID 19 cases and the increased number of patients in the hospitals. Actually, the COVID 19 cases are increasing daily in the states of Florida, California as well as other states of the United States.

President is in no mood to stop

The Medical Association and Disease Control Association has stated that the official count is much lower. Off the record, the unofficial count is around twenty-three million dollars. Obviously, the unofficial count is ten times the official count. However, President Donald Trump is in no mood to shut down the country. In fact, he has officially stated that the economy will be raging to move forward. According to the President, the United States has never stopped, nor will it ever stop in the future.

GBP/USD reverses the intraday trend and crosses above 61.80% Fib retracement level as the price spikes steeply, and the pair trades at 1.22683, at the press time. Pound, in the previous week, rose from the 7-day low price of 1.20853 and rose to a 7-day high price at 1.229. With an intermittent dip, the candlewick of the GBP/USD price trend slightly slid below 38.20% Fib Retracement level.

With a dull start to the week, yesterday, the price of Pound slid below 1.2165 against the US Dollar. As the pair gained the traction today, the price spiked from 1.220 and regained the lost 50-day and 200-day MA support on the intraday chart.

For the current trading price, the major support lies at 1.216, which is 38.20% Fib Retracement level, while on the other end, the price is already approaching the double top in a period of 7 days at 1.229, while currently, it is at 1.226. However, if the GBP/USD continues to keep strengthening during the trading session, today, it is likely to retest 7-day high. Additionally, as per the current economic crash, Pound is expected to face a tough resistance around 1.2300 to have a persistent trade above it.

The technicals appear bullish due to intraday gain of traction, and the MACD line crosses above the signal line, and the RSI lies at 82.82 and is hitting the overbought region.

NZD/USD seems to be an intraday gainer and hits 0.61 after 9 days, and in between, it dipped as low as 0.592 on the 8-hourly chart. Just after spiking above 0.60, the pair regained the lost support from the daily moving averages. The pair are appearing quite volatile as if we look at the bigger picture; New Zealand Dollar has been trading in a narrow range of 0.58 to 0.61 since April, after the market crash in March.

New Zealand Dollar has been gaining since the start of the week, and for the 3^rd day straight, it is experiencing a bullish divergence against the US Dollar. However, the pair is facing a strict resistance at 0.61 in order to have a complete bullish crossover. The range-based trading is lacking momentum for a positive trade over the past 7 weeks now.

Here. NZD is seen strengthening against the USD, which helped the pair to have a winning streak in the early half of the week. The major support lies at 0.58, while the major and immediate resistance lies at 0.61 to have a near-term bullish crossover. The RSI of the NZD/USD is seen rising from the selling pressure after it gained for the 3^rd day straight and lies at 61.88.

GBP/USD was seen accumulating until the onset of the ongoing month, and the pair is now experiencing a trend revision as it draws a fine downtrend. Moreover, after a steep fall in March, when Pound breached below 1.15 at 1.14 due to the worsening situation from the Coronavirus, which was then addressed as the Pandemic by WHO, the pair has failed to rise above 1.265 persistently. Therefore, it draws a major resistance, and as per the current momentum, it is facing intense selling pressure. Here, Pound is seen weakening in comparison to the US Dollar.

However, in the early trading sessions today, Pound had hit around 1.2125 for a brief period of time and at just at the onset and within no time retested intraday support at 1.204. Moreover, the GBP/USD fell to the lowest trading level and retested 7-week support, which was the last hit on March 26, 2020.

On the 8-hourly chart, Pound breaches the price accumulation and draws a descending trend due to a lack of traction. GBP/USD even fails to retain support from 50-day and 200-day daily MA after a slide below 1.24 price area. While the US Dollar was seen struggling in the previous week and hence a subdued demand of the US Dollar held support to EUR/USD.

Amidst the growing fear of the second wave of Pandemic, the economies have started to open up, and we believe that slowly yet not steadily, a rebound will help the currency to gain momentum towards the end of the month. However, the further dip will lead to retesting old support levels from March 2020 when the price of Pound hit the YTD lowest against the US Dollar.

EUR/USD experiences a freefall in the intraday as it nosedives as low as 1.077 on the half-hourly chart. The pair is experiencing an intraday extremity after marking a 7-day high at 1.089 in yesterday’s trading session. However, Euro experienced a steep dip and closed the trading around 1.082.

The pair has lost steady support from the 50-day and 200-day MA after yesterday’s steep rejection and loss of traction in the intraday. With this, the technical indicator assigned has hit the selling zone and rose with a fine rebound, round the press time. If the price of Euro falls even further, we are likely to have a double bottom around 1.076 in the given 7-day duration.

On the half-hourly chart, the Euro is seen weakening against the greenback and has a notable loss of momentum. Towards the second half of the week, the pair is seen losing a substantial percent just like the previous week’s fall.

EUR/USD now holds major weekly support at 1.078 as the US Dollar strengthens against the Euro. Moreover, the main currency appears weaker because of the growing number of Coronavirus cases amidst the few relaxations given in the lockdown.

The major support to watch out for lies at 1.0780 and the major resistance lies at 1.082, which happens to be the current day’s low and yesterday’s closing price, respectively.

USD/JPY exhibits an amazing intraday rebound from 106 to 106.5 in the given trading duration from the onset of the day until the press time. After a notable decline over the past six days, USD/JPY seems to have an amazing intraday momentum in the global market. After the mid-day of the trading session, USD/JPY spiked from the weekly lows and exhibited a clear rebound.

Technical Analysis: USD/JPY

After a brief short-coming below 106, USD/JPY closed with a gaining rebound on Wednesday, and after a slight bullish candlestick aversion, the trend rose steeply today. The bullish trigger is likely to face resistance at 106.8, and the return of US Dollar as the reserve currency as the officials extend lockdown with relaxations for the economy to start, will boost the pair and its demand.

As of now, the technicals are drawing a bullish picture as the MACD crosses above the signal line due to intraday rebound in the price of USD/JPY. The RSI is also nearing the overbought region as the demand increased and lies at 65.36. However, once the pair makes a complete rebound, it will retain support from 200-day MA while holds 50-day daily MA support at 106.2.