Daily Market Charts and Analysis August 12, 2021

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

USDHKD

The US inflation maintained the pace of inflation growth in July. Prices of consumer goods stood at a 13-year high with a 5.4% increase. Meanwhile, the month-on-month data showed a slowdown after advancing 0.5% for the month from 0.9% prior. Analysts expected further pressure in prices as crude oil inventories showed a supply deficit of -0.447 million barrels. The inventory build-up in the final week of July was 3.626 million barrels. On Thursday, August 12, the market is looking forward to the initial jobless claims data. For last week, the consensus estimate declined to 375,000 in the number of individuals filing for unemployment benefits. Meanwhile, the continuing report is anticipated at 2.88 million against 2.93 million in the week prior. Based on the MACD indicator, the MACD line and Signal line are looking to extend USDSGD’s bullish momentum. As for the Moving averages, the 50-MA diverged from 200-MA to support the uptrend movement since June.

USDSGD

Singapore’s economy advanced by 14.7% in Q2 compared to the same period in fiscal 2020. This was the highest annual QoQ growth recorded in a decade. The reported figure also beat estimates and a preliminary result of 14.2% and 14.3%, respectively. Meanwhile, the second quarter was down 7.2%. During July 13’s preliminary, the city-state printed a -2.0% decline. The miss in the initial reading was due to the resurgence of covid-19 in the region. Despite this, MIT (Ministry of Trade and Industry) remains optimistic about Singapore’s near-term outlook. The government sees the economy expanding between 6.0% to 7.0% for fiscal 2021. This was a revision of the 4.0% to 6.0% growth expected in November last year. The bullish forecast was due to the easing of coronavirus restrictions as inoculation reached 70% of the population. The upbeat estimate for the 2021 GDP is supported by the “bullish crossover” of the 50 and 200 moving averages in July.

EURDKK

The consumer price index (CPI) numbers from Germany and Italy parted away from the European Central Bank’s target. On August 11, the EU countries published inflation growths of 3.8% and 1.9%, respectively. Germany’s data showed a continued increase in July from the previous month at 2.3%. Meanwhile, Italy’s figure is still below the country’s quota. The ECB recently revised its annual target from 2.0% to “close, but not below, 2.0%. Germany and Italy’s inflation data is far from ECB. This could pressure the central bank to reassess its accommodative policy to bring the prices near its target. As for Denmark, job postings continue to recover with 31,800 additions in July. This was near the Jobindex report’s June record. EURDKK trades between the 200-day and 50-day moving averages at 7.43811 and 7.43692. A crossover looms, which suggests an upside movement for the pair in the short term. The MACD indicator shows recovery from the bottom.

EURTRY

TurkStat published the unemployment record for June 2021 on Tuesday, August 10. The jobless rate was down to 10.6% from the prior month’s 13.3% result. Meanwhile, the individual count of unemployed individuals in the country in the month was 4.00 million. In May, the record was 4.82 million. Turkey’s businesses are also pushing for rapid vaccination to help their operations return to normality. A “no jab, no job” campaign is now circulating in the country. Analysts expect the high growth to spur prices and send inflation higher. This could encourage the dovish President Recep Tayyip Erdogan to tighten the country’s monetary policy. Earlier this year, Erdogan sacked the central bank governor for raising Turkey’s benchmark rate. As for the technical, prices failed to breach the 50-moving average at 10.23706. The 200 MA offers immediate support at 9.60058, while the main target is at 9.51263. The MACD indicator is expected to fall in the short term.