Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
The pair has slipped lower than its most recent support line below the 50-day moving average, with the overall trend apparently biased to the downside, although longer-term movement suggests a sideways chop. According to forecasts, 2020 will be a relatively good year for Switzerland despite the gloomy economy. State Secretariat for Economic Affairs experts predict that the “economic dynamics” will be the same as those from 2019. The gross domestic product (GDP) is expected to grow by 1.7%, while unemployment rate and inflation will stay low at 2.4% and 0.1%, respectively. Also, the forecast added that the pharmaceutical industry will continue doing its role as the “engine of Swiss exports.” The swiss drugs are in demand around the globe because of the population growth, ageing population, and greater living standards. This makes the Swiss economy immune to the trade wars and geopolitical conflicts.
The pair has pulled back a bit from record lows, although the British pound now appears to be gaining back some of its footing near the 50-day moving average. The euro previously perked up by yearend after investors betted for stronger growth in 2020, partly thanks to the US and China which are finally due to sign a Phase 1 trade deal this week. The US currency had retained most of its strength through 2019 as the US economy outperformed the rest of the world. Meanwhile, the British pound is the second-best performing currency for the year, which has been a rollercoaster one for many in the forex markets. Against the euro, the pound ended 2019 with a 5.36% gain. The final price action, however, rolled on international factors than domestic ones by the end of December. Perhaps the biggest of those international factors is the broader weakness in the greenback, scaling some substantial amount of losses.
The pair pulled back from recent highs reached on December 27, giving up most of its gains to trek downward near the 200-day moving average and 50-day moving average. Again, the euro benefitted from the dollar’s broad weakness last week, rallying as investors become confident that global growth prospects are improving and that the US-China trade relations are seeing better outlook. Over the past few days, Japan has released adverse updates. The industrial production data was released by the Ministry of Economy, Trade, and Industry. This data measures Japanese factory and mining outputs, and the figure slipped dramatically to -8.8% from the previous month. The changes in industrial production are widely followed in the manufacturing sector as a major indicator of growth in the country. Also, the Leading Economic Index had two-point drop compared to the figures from last month.
The pair has plummeted steeply at the end of the year as the dollar continued to showcase its broad weakness, benefitting the Canadian dollar. And because of this, the loonie just won the metaphorical “best-performing currency award” in the forex market among the G10 currency. On the Canadian dollar started the year with a bang, too, as it opened 4.4% higher in Toronto. A plethora of factors contributed to the strength of the Canadian dollar, including the Bank of Canada’s shift from dovish to neutral monetary policy approach. The central bank was largely expected to slash its overnight rate in its October meeting, but it didn’t. At the same time, the economic reports from the country were also supportive. Canada said it added 293,000 new jobs compared to the year earlier. The inflation rate is also at the BOC’s target, meaning there was lesser need for monetary stimulus.