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 attempting a recovery from record lows, trading in the green much of the week and even reaching weekly highs. However, the 50- and 200-day moving averages still show the pair is facing some heavy downward pressure. The euro still appears weak after the European Central Bank was seen as more dovish than the market’s expectations. ECB President Christine Lagarde yesterday attempted to redefine the bank’s main goal and the way to achieve it, after years of experiment with negative interest rates and quantitative easing failed to deliver the targeted inflation levels. Lagarde also said the risks to growth in the eurozone remained tilted to the downside. Later, traders will focus on the Purchasing Managers’ Index (PMI) data from Germany and the eurozone. The common currency was also pressured by the threat of coronavirus in China since Germany and other countries in the bloc have huge trade exposures to the Asian giant.
The dollar is keeping up the pressure to the Hungarian forint as the pair appears ready to reach its September 30, 2019 highs soon. Bullishness prevails for the pair’s movements as the price lies above the two moving averages on the daily chart. The National Bank of Hungary (NBH) will keep interest rates around historic lows in its meeting on Tuesday, with inflation poised to scale back slowly from December’s seven-year highs and the economy set to lose steam in the years to come, according to a survey. The poll showed that analysts are expecting the rates to stay unchanged at least until the end of 2021. Overnight deposit rate will be rising 30 basis points to 0.25% by the end of next year. Headline inflation climbed to a seven-year high of 4% last month. Meanwhile, core inflation inched down to 3.9%. The central bank targets 3% inflation with a tolerance band of 1% on either direction.USDNOK
The dollar kept up the pressure too on the Norwegian krone, although the momentum has diminished after the news that Norway’s central bank kept its policy interest rate on hold at 1.5% on Thursday, meeting expectations. It said that the economy was developing largely as expected as global risks slightly diminished. Norges Bank raised interest rates three times last year but said in December that the policy would most likely remain on hold for a period of time. However, the probability of a rate hike is still higher than that of a cut. Although the rates so far have been determined by Norges Bank’s executive board, the latest decision was the first by a new policy-setting committee, which consists of a governor, the two deputy governors, and two external economists. The central bank said it would make some changes in the manner it communicates about monetary policy, reporting on the exchange of views among committee members.
The pair is trading in the green in the latest trading session, with the price recently suffering from downtrend and the Mexican peso gaining strength against the dollar after the congressional approval of the new north American trade deal with the United States and Canada. Also, deputy foreign minister for North America and Mexico’s top trade negotiator Jesus Seade said that Mexico should try to deepen its economic ties with China after the approval of the trade deal. He described such efforts as vital. Last week, the US Senate completed the ratification of the US-Mexico-Canada Agreement (USMCA), a deal negotiated at the calls of US President Donald Trump to replace the 1994 North American Free Trade Agreement (NAFTA). Canada’s parliament is expected to approve said deal soon. Some Asian businesses wasted little time in committing investment to Mexico once the USMCA has passed the US congress.