Daily Market Charts and Analysis January 20, 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.

GBPAUD

The pair has been trading within tight ranges in the previous sessions, trading near the 50-day moving average and indicating that bulls and bears are reluctant to take the pair higher or lower. The Australian dollar managed to gain against the British pound before last weekend. However, the Aussie dollar could revere and give up its gains to the royal currency in the coming sessions, according to analysts. The British pound’s weakening was largely due to the retail sales data for December, which added to expectations that the Bank of England, the British central bank, would cut interest rates at the end of this month. Over in Australia, the antipodean currency perked up because of the optimism in the market amid China’s latest batch of economic data. China’s economy grew at 6%, unchanged from previous reading. However, the December retail sales came in better than expected, suggesting the economy may have gained momentum.

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GBPCAD

The pair was trading in the green just below the 50-day moving average and above the 200-day MA. Trading within ranges, the British pound in this pair managed to strengthen against the loonie in spite of the dull retail sales data. Over in Canada, Bank of Canada Stephen Poloz said that the central bank would be watching the housing rebound, which is a phenomenon that can grow into a dilemma if signs of “froth” appear. And even if the housing markets aren’t as hot as they were many years ago, the immigration, solid job growth, and low interest rates are driving a resurgence in key markets. This Wednesday, the bank is set to hold its first policy meeting for the year, with the markets largely expecting the Canadian central bank to keep rates unchanged. And although critics have blamed previous rate cuts for the rising home prices, the health of the housing market isn’t part of the bank’s mandate, which is low and stable inflation.

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USDDKK

The pair has pulled back slightly after trading steeply in the green in the previous trading session, apparently hitting a resistance line in the form of the 50-day moving average. Still, the dollar appears to be retaining its strength against other major currencies as economic data showed solid growth, and there were also fewer fears of impending slowdown. US homebuilding data showed an increase to 13-year high in December as activity increased across the board, indicating that the housing market recover was back on track amid the low levels of mortgages. Last week, too, showed US retail sales gained for a third straight month in December. A gauge of manufacturing activity in the US Mid-Atlantic region recovered in January to its highest level in eight months. Also, futures pricing indicates that nobody anticipates the US Federal Reserve to cut rates in its next policy meeting at the end of the month.

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GBPNZD

The pair is trading within tight ranges on Monday after slumping last week on lacklustre UK economic data. The New Zealand dollar appears to be saving its energy for later in the week ahead of a key economic data release. New Zealand will be getting its consumer price index on Friday, which could decide the direction of the Reserve Bank of New Zealand’s interest rate policy. The CPI is expected to have risen 0.4% during the December quarter, pushing annual inflation up to 1.8% from the 1.5%, but this is still below the middle of the Reserve Bank of New Zealand’s target range of 1% to 3%. Any lifts in the underlying inflation could mean that the RBNZ’s decision to keep rates unchanged at 1% is right. However, according to an analyst, inflation is not guaranteed to settle around 2% over the medium term. That’s because there are still hesitancy and caution among companies.

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