Daily Market Charts and Analysis January 15, 2020

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Market Charts and Analysis

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

GBPCHF

The pair has so far lost a huge chunk of its previous gains in the week, dropping below an important support line. It touched the 200-day moving average, which is now serving as a key support for prices to rebound. The British pound has weakened this week on expectations that the Bank of England will impose interest rate cuts by its next policy meeting. The decline of the pound sterling came after the disappointing economic data and comments from central bank officials that indicated they were open to rate cuts. Meanwhile, the Swiss franc has been added to the US’s watchlist of currency manipulators. According to analysts, the US decision could discourage the Swiss National Bank (SNB) from intervening to try to limit further appreciation of the franc. The SNB denied that its interventions were to give the country a trading advantage, citing the negative effects on inflation and its economy, which is reliant on exports.

Charts

EURAUD

The pair is still trading within huge ranges, chopping sideways, with the 50-day and 200-day moving averages converging. The Australian dollar has been on weak footing albeit gaining against other currencies. Its reluctant gains have been due to the raging bushfires ravaging the country. Its domestic confidence has also been hit by forecasts of weaker currency. Climate advocates and activists have also been in a lot of headlines these days. The European Union is planning to dedicate a quarter of its budget to addressing climate change, adding that it would work to shift 1 trillion euros investment toward making the EU’s economy more environmentally friendly over the next 10 years. EU officials have been aiming to deliver European Commission President Ursula von der Leyen’s Green Deal, and they have said that the Europe Investment Plan will have funding from the bloc’s budget and the private sector.

Charts

EURUSD

The pair is trading in the green today as price previously hit the 200-day moving average, which is serving as a key resistance the breaking of which could mean the price would continue going up. There is no top-tier, high impacting eurozone data in the pipeline, so investors turn to German produce price index, which is a mid-tier release. The data was better than expected, with inflation at wholesale level stagnating at 0% on a monthly basis and slipping -1.3% year-over-year. The data helped support the euro, which is also getting some upside from the imminent signing of the US-China phase one trade deal. The German manufacturing sector has been adversely impacted by the US-China trade row, which has also damaged global confidence and demand. The manufacturing sector has plummeted into a deep contraction. Investors are now optimistic that a good deal between Washington and Beijing could restore global demand lift Germany.

Charts

USDJPY

The pair has rebounded from the deep slump it recorded earlier in the month, when tensions were high between the US and Iran. It’s presently at record highs above both the 50-day and 200-day moving averages. The safe-haven appeal of the Japanese yen has subsided as investors took a more risk-on mode after the tensions eased up. However, now that the world is waiting for the official signing of interim phase one trade deal between the US and China, movements are capped, and investors are taking a more cautious tone as they flock the safe-haven Japanese yen. Meanwhile, the document of the trade deal is still under wraps. The text is estimated to be more than 80 pages long. Also, the absence of the details of the documents is another unconventional approach that US President Donald Trump has taken in negotiating trade agreements. Trump has been known to ink even mini-deals, such as those with Japan and South Korea.

Charts

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