Brazil is struggling on both the humanitarian and the financial frontы. As a result, Brazilian real is weakening
Emerging market updates
- USD/ZAR has been trading near the crossover of 100-day and 200-day SMAs. Today, traders need to pay attention to the State of the Nation (Sona) address where President Ramaphosa is expected to make comments on the future of Eskom. Will the support package be delivered to the South African electricity public utility? Let’s find out at 18:00 MT time. If the rand is supported, bears will push USD/ZAR below the 14.2761 level. The next support will lie at 14.14. If the ZAR weakens, the pair will rise back above the 50-day SMA. Bulls need to push the pair above the 14.47-14.53 levels to restore the uptrend.
- The Turkish lira was hurt by the news that the US considers three sanctions packages. Today, the Turkish president Tayyip Erdogan said that if Washington imposes sanctions, the countermeasures come immediately. On H4, USD/TRY tested the 5.81 level on his comments. Further uncertainties may push the pair above this level to the resistance at 5.84. Bears will keep the 5.7198 and 5.6975 levels in focus. As far as they are broken, the next support will be placed at 5.6606.
- The Singapore dollar has been strengthening since the beginning of the Asian trading session. USD/SGD has fallen below the 100-day SMA. At the moment, it is testing the support at 1.3560. After the break, bears will target the 1.3533-1.3520 levels. Break below this zone will pull the pair lower to the 1.3469 level. From the upside, there is a resistance at 1.3650 (200-day SMA). Next resistance levels are placed at 1.3688 and 1.3719.
USD/CHF and EUR/CHF rose to tactical highs. What's next?
During the daily press briefing of Andres Manuel Lopez Obrador, it was announced that Mexico will receive 1.4 million doses of the vaccine by the end of January. Is that optimistic enough for the peso?
US retail sales will be out on Thursday, April 15, at 15:30 MT. It is a significant release for traders as it will impact the US dollar.
As the earnings season kicks in, JPMorgan is the first to impress us with the better-than-expected data!
The Reserve Bank of New Zealand will hold a meeting on Wednesday, April 14, at 05:00 MT.