Daily Market Charts and Analysis February 12, 2020

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

USDHUF

The pair’s price is rising to record highs, trading in the green for most of the recent previous trading sessions. The US dollar is largely supported by the solid US data and safe haven demand amid the ongoing coronavirus fears. Since last week, the dollar has been benefitting from traders seeking safety amid the scare. Attention will be focused on Capitol Hill where US Federal Reserve Chair Jerome Powell is to testify before Congress. Meanwhile, the Hungarian forint slipped previously, although it’s attempting to recover some grounds after the National Bank of Hungary (NBH) rejected all bids at its weekly euro/forint swap tender, which allows the NBH manage forint liquidity within the banking system. By rejecting the bids, the surplus liquidity declines. With fewer forints in the system their value should increase. However, since the forint hasn’t move significantly higher, the central bank might need to do more to curb inflation.

USDMXN

The pair is trading in the lower regions of the daily charts below the 50-day moving average, with the USD bulls having difficulty gaining momentum against the MXN. For central bank news, Mexico’s central bank is expected to lower its key interest rate again on Thursday, based on a survey, with the economy appearing to be stagnating. The poll showed that economists expected the Bank of Mexico to cut the rates by 25 basis points to 7%, which would be the bank’s fifth rate cut since August. According to data, Mexico’s economy shrank 0.1% last year. That was its first decline in a decade. Annual inflation increased 3.24% in the year through January, higher than the central bank’s 3% target. In the Banxico’s December meeting, it announced a 25% rate cut. It emphasized the concerns that a recent minimum wage hike could stoke inflation. Later in the day, the central bank is expected to publish its most recent monetary policy statement.

USDNOK

The pair has been trading in the red in the recent sessions, trading lower than its recent record highs. For fundamentals, Norway’s consumer price inflation increased steeply in January to its highest level in more than three years. This increases the chance of an interest rate hike in 2020, thus strengthening the krone currency. Core inflation, which is a key measure for monetary policy, was at 2.9% year-on-year, according to Statistic Norway, higher from 1.8% in December. A poll showed that economists expected a rebound to 2.0%. Norway’s central bank has a target core inflation of 2.0% over time, and it had forecast a January reading of 2.2%. Central bank governor Oeystein Olsen is expected to provide a broad outline of the country’s economic prospects in an annual speech to Norwegian business leaders and politicians this week. Though Norges Bank said key rates were expected to remain on hold, the upward spiral of inflation could mean tightening.

USDILS

The Israeli shekel is trading near its strongest against the US dollar, even though the buck is enjoying some strong movements against other majors. It currently trades in its strongest in two years against the greenback, while it’s trading at a four-month high against other major currencies. Investors are flocking to the US dollar for safety amid the coronavirus outbreak. However, after gaining 7.7% against the dollar, the Israeli currency has gained another 1% since the start of 2020 even though Israel’s central bank has bought an estimated $7 billion in foreign currency in the past three months in hopes to weaken the shekel. It also appears that the currency isn’t planning on weakening anytime soon. The flow of gas from Leviathan and its export to Jordan and Egypt has started. Israel is entering into the World government Bond Index (WGBI) from April 2020. Combine those with the stronger economy, the shekel is set to still rise in the future.