Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
The pair is on a downtrend below the 50-day moving average, with the Polish zloty strengthening against the euro. Bulls have attempted a pullback on January 3 but was rejected by prevailing bears who took the price further down, heading towards a pretty solid historical support line. Over in Poland, Polish Development Fund President Pawel Borys wrote that the country’s economic growth will likely sow down to 3% to 3.5% this year, with the economy being marked by cyclical slowdown of GDP growth. However, Borys noted that the figure was still “a good result against the eurozone.” Wages, according to Borys, will grow by an average of 8%, which would compensate for an increasing in inflation reaching 3% to 3.5%. Also, interest rates are not likely to go up since the price growth would slow down. The PFR president wrapped up the note by expressing his conviction that “both the economy and the budget will be balanced.”
The pair is seeing some upward moves, trading in the green in the last three sessions and creeping nearer the 50-day moving average, which could serve as a resistance line the breaking of which could mean further upside for the euro against the Swedish krone. Today marks an economic data day for the eurozone, with IHS Markit’s eurozone composite purchasing managers’ index inching up to 50.9 from 50.6 in November. This means that services have boosted business activity in the region in December. On the other hand, a downturn in manufacturing continued to weigh down the region’s economy. There was a considerable divergence within the economy. Dominant services sector rose to 52.8 from 51.9 in November, but manufacturing fell deeper into contraction territory from 46.9 to 45.9. This marks the 11th consecutive month that the manufacturing activity fell. The growth in GDP was headed by Ireland, where services expanded at the fastest rate.
The pair has seen a downturn in recent sessions, with prices slipping to record lows just two sessions ago. Signs of picking, however, is showing, likely due to the not-so-disappointing economic data from the eurozone, albeit near stagnation. Still, the 50-day moving average points downward, indicating the pair may face downward pressure going forward. As for Czechia, economists are predicting a bleaker outlook for wage increases in the coming year. Last year, the solid economic growth and low unemployment have driven growth in salaries, with the labour market tugging against each other to hire skilled workers. Solid growth has also let firms to increase salaries and improve conditions for the staff. However, things may change in 2020, as economic slowdown is likely to make businesses more cautious. Economists, meanwhile, are also predicting that trade unions will likely demand 6% to 7% wage hikes.
The pair has traded in tight ranges in the previous trading sessions, possibly signalling a change in trajectory. That is, retracing its downward moves and changing them to upwards, with the 200-day moving average quite possible acting as a solid support line. The Hungarian forint has gotten some boost from some investors as economic growth in the country exceeded analysts’ expectations during the third quarter of last year. However, that boost has lost its momentum in recent weeks as the US dollar gains the riskier forint thanks to the deteriorating relations and geopolitical tensions between the US and Iran, which have been engaged in an escalated conflict following the killing of a high-ranking Iranian general via a drone strike approved by US President Donald Trump. The dollar, which is considered the world’s reserve currency, serves as a safe-haven asset for investors seeking safety in times of economic and political turmoil.