Daily Market Charts and Analysis December 24, 2019

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

GBPUSD

The pair has been sliding for five consecutive sessions, falling from its December 16 highs and breaking below the 50-day moving average, which could be used by the bulls to prop the royal currency back to strength against the US dollar. Meanwhile, the pound has been suffering from the fears of a no-deal Brexit amid thin market liquidity due to the incoming holidays. At the same time, the price may continue sliding downwards as many other traders sell off in their gains, pressuring the pound lower. The British pound has gotten a large boost from British Prime Minister Boris Johnson’s victory in the December UK election. However, as it turned out, the GBP wasn’t immune to Johnson’s tough rhetoric. The BPM has announced that he was planning to legally block an extension of the Brexit transition period beyond the official deadline of December 31, 2020. If Johnson fails to secure a trade deal on that date, the UK may leave the EU without a deal.

EURCAD

The pair is currently at the downside of its sideways chopping trend, slipping below the 50-day moving average, although this time the sideway chop is a bit higher than the previous trading range. For fundamentals, the manufacturing activity in the eurozone continued to fall in December, similar to the times it did in almost every month this year. The IHS Markit eurozone manufacturing purchasing managers’ index (PMI) shrank to 45.9 in December from the 46.9 recorded in the previous month. Because of this, the composite PMI, which is the combined measure of both manufacturing and services, stayed unchanged at 50.6. A reading that’s lower than 50 means that the majority of companies surveyed reported lower activity. Still, German business confidence perked up in December, according to another survey data. The business confidence index climbed to 96.3 in December, beating analysts’ consensus of 95.5.

NZDJPY

The pair is trading upwards, although volume has been scarce as traders get off and prepare for the Christmas holiday. The NZD is gaining ahead of Christmas as it continued to be bolstered by the prospects of the inking of the interim “phase one” trade deal between Beijing and Washington. China has announced that it would cut import tariffs on a range of goods from January. According to one report, tariffs will be cut on frozen pork, avocados, non-frozen orange juice, new asthma and diabetes drugs, key components on machines and manufacturing integrated circuits, and some logs and paper products. At the same time, China also announced it would cut levies on products from a range of countries, and those include New Zealand. Over in Japan, a few members of the Bank of Japan board said the central bank must work with the government in dealing with the next possible economic downturn, according to the minutes for their October rate review.

USDHKD

The Hong Kong dollar still has the upper hand against the US dollar in recent, after the dollar lost steeply to the Hong Kong counterpart starting December 11. Over in Hong Kong, protests have been less violent after the huge win for pro-democracy candidates. However, Carrie Lam’s visit to Beijing this week, in which she gained the unanimous support from Chinese authorities, could probably trigger more aggressive tone by demonstrators this weekend. The country’s economic is in recession in 2019, and predictions are telling that it could stay so until mid-2020. Unemployment rate ticked higher in November, and markets are expecting more job losses. Companies are moving elsewhere. Geopolitical issues are influencing the country’s near-term economic future. The anti-government protests have pummelled the city since June, coming along with the trade war and the passing of Hong Kong Human Rights and Democracy Act in Washington.