Daily Market Charts and Analysis December 18, 2019

Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.

EURSEK

The pair is trading in the green in the previous two sessions, with the 50-day moving average going south and appearing ready to cross below the 200-day moving average, indicating increasingly bearish sentiment among traders. Over in Sweden, the central bank is getting ready to become the first in the world to move out of its negative interest rates. The expected move will be implemented amid worries over the unwanted side-effects of the policy, even though it is needed to fight slower domestic growth at home as well as a turbulent global outlook. Meanwhile, the European Central Bank, Switzerland, and Denmark had already implemented sub-zero rates, and they have been the first central banks to ever impose such an extreme policy. If analyst predictions are correct, the Riksbank will increase its benchmark repo rate to zero from -0.25%, making it the first bank to return to a more normal territory.

EURCZK

The pair is paring back some of its losses, although it’s still largely down to historic lows, coming after the confirmation of the death cross, indicating increasingly bearish sentiment among the traders of the pair. Over in Czechia, the Czech Statistics Office (CSO) confirmed its earlier preliminary estimates of the Czech economic growth at 2.5% year-on-year and 0.4% quarter-on-quarter in the third quarter of 2019. The year-on-year growth of the country remained higher than the European Union average of 1.4%. Gross value gained by 2.4% year-on-year and by 0.3% quarter-on-quarter in 2019. Favourable external trade balance improvements also had a positive impact to a year-on-year GDP growth. Exports expanded by 1.8%, while surplus of trade in goods stood 5.4 billion euros, or 1.96 billion euros higher year-on-year. This is largely due to a robust increase in the value of exports.

USDHUF

The pair has recovered from recently losses although it’s still near its November lows under the 50-day moving average and above the 200-day moving average. Big news from the Central Bank of Hungary: it announced that it was keeping interest rates unchanged at a record low of 0.9%, meeting expectations. The bank also left its overnight central bank deposit rate the same at -0.5%. The Hungarian central bank lowered its base rate to the current level in May 2016, and it has also maintained negative rates for overnight deposits. Then, in September 2017, this rate was lowered to -0.15%. On March 27 this year, the current rate of -0.05% came into effect. The latest decision to hold rates came amid increased pressure on the Hungarian forint. The central bank said that inflation has also remained volatile, pushing the forint on a weak pathway against the euro. According to data, November inflation stood at 3.4% year on year.

USDMXN

The is slowly creeping back up after falling steeply since the start of December, coming nearer a key resistance line. Recently, top negotiators from both the US and Mexico reaffirmed the US-Mexico-Canada Agreement (USMCA), making it a done deal, although complaints came from Mexico over a labour provision unveiled by Democrats. The trade agreement will be going for a debate and a vote at the US House later this week, with the Senate expected to take it up in January after impeachment. Mexico’s Undersecretary for North America Jesus Seade came to Washington on Monday after being “surprised” over the changes in the USMCA, which has already been ratified in its previous form by both Mexico and Canada. However, Seade then said that he was “very satisfied” with the new terms. The issue was about a labor provision that designates up to five inspectors from the US Labor Department to be stationed in Mexico to impose reforms.