Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
The Australian dollar slows down but still has the upper hand against the British pound. The pair’s trajectory is down and should reach its support level by the first half of July. Prices would finally reach levels last seen in December 2018. The pound sterling is greatly weighed on by the news that the United Kingdom will be reopening its economy. Investors are concerned that in case of another wave of infection happens, it could further cripple the economy that is also pressured by Brexit news. If the pair heads downward, bearish investors would cement their hold on the direction of prices in the trading sessions, forcing the 50-day moving average lower against the 200-day moving average. Starting next week, the British government will ease the harsh restrictions against arriving travelers for about two weeks. The United Kingdom will introduce a traffic light system that would allow travelers from countries with coronavirus cases to enter.
As of writing, the British pound to New Zealand dollar exchange rate is seen trading neutrally in sessions due to the recent announcement of the Reserve Bank of New Zealand. Still, bears have control over the direction of prices, which are widely projected to continue going down to its support level. Once the pair reaches its support, the 50-day moving average would further plunge against the now dominant 200-day moving average. Just recently, the kiwi reserve bank said that as of the moment it has no intention to raise its official interest rates as of the moment. Aside from that, investors are still weighing on the fact that the RBNZ is open to push its rates to negative territories amidst the efforts to buoy the economy from the massive coronavirus slump. RBNZ Governor Adrian Orr said during an interview earlier this Tuesday that the rates will remain low for the foreseeable future, giving bullish investors of the pair a slight hope.
The Canadian dollar trades sideways this Tuesday against the British pound. Bullish investors of the exchange rate saw an opening to retrieve its losses from the previous sessions. But despite that, the Canadian dollar should regain its footing and drag the pair lower in the coming trading. The pair is widely on track to go down to its support by the first half of the month, ultimately forcing the 50-day moving average towards the 200-day moving average. Also, bearish investors are cautiously moving today as they wait for Canada’s gross domestic product results which are scheduled to be released today. Bears are hoping that the results would come in better than what is projected. Meanwhile, the British pound is greatly weighed on by the concerns about the United Kingdom easing its restrictions on travelers from low infection rate countries. Britain’s move comes as it vows to kickstart its struggling economy amidst the ongoing pandemic.
The poor economic data that was released earlier today from Denmark opens the floor for bullish investors to take the pair higher. The exchange rate should reach its resistance level by the first few days of July, helping the 50-day moving average recover against the 200-day moving average. Earlier today, it was found that Denmark’s quarterly gross domestic product plunged from 0.4% to just -2.0%. Aside from that, the European country’s unemployment rate jumped from 5.1% to just 5.4%, weighing heavily on the Danish krone. As for the US dollar, its hinging on consumer confidence as the number of coronavirus cases rise in the United States and around the globe. The greenback is still widely dominant in the trading sessions, but yesterday’s news that China’s coronavirus vaccine getting promising results has seemingly slowed it down. But as long as there is no cure, it’s expected that the safe-haven appeal of the buck will still shine through.
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