Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
USDJPY
The US dollar to Japanese yen exchange rate remains bearish despite the rally yesterday. As evident to today’s performance, it appears that bullish investors barely have fuel in their tanks to prevent the Japanese yen from appreciating against the US dollar. The pair is expected to crash to its resistance before the first half of May ends. The pair recently turned bearish as seen on the chart, the 50-day moving average has slipped lower than the 200-day moving average. Perhaps one of the reasons for this is that the US initial jobless claims report has yet again failed to meet projections. The results have also alarmed investors as it could prompt the authorities to unleash another wave of economic support package that will help deteriorate the strength of the greenback. The pair is also trading flat today because investors are waiting for further guidance from the ISM manufacturing PMI. The report is scheduled to be published later this Friday.
NZDCAD
The New Zealand dollar maintains its bullish momentum against the Canadian dollar despite the recent slip-up. The pair is widely believed to reach its resistance level before the second half of the month kicks off. The kiwi is broadly bullish in the foreign exchange market thanks to the recovery theme that previously gripped the global market. Just like its cousin, the Australian dollar, the New Zealand dollar is also maintaining its positive link with the global investor sentiment; meaning that once the markets rise, it will rise and vice versa. Moreover, the Canadian economy flatlined in February according to official data from the country. The reasons for it were the teacher strikes in Ontario and the disruptions in the country’s transportation and warehousing slowed down the Canadian economy prior to the virus. Investors are concerned about the fact that February’s report is lackluster, so, what more for the March reading, the month the virus struck.
GBPUSD
The British pound keeps its eyes fasten to the pair’s resistance. As of today, the US dollar has regained its footing, but unfortunately for bearish investors, the pair is widely projected to rally to its resistance level in the coming sessions. The pound sterling to US dollar exchange rate is underpinned by the contraction of the US dollar index. In fact, the greenback’s futures have been declining for four consecutive days and is still on track for a fifth. The United States Federal Reserve has left its official interest rates unmoved yesterday as expected by the market, giving support to the greenback today. However, the move isn’t going to give the buck support for more days. Jerome Powell, the head of the US Fed, said that the bank will be patiently waiting for the effects of the stimulus packages that were released in the past few weeks. Powell then added that the reserve bank is not in a hurry to adjust its rates higher as it just slashed it to nearly zero.
EURCAD
Thanks to the recent news about the European Central Bank, the EURCAD made a big leap in the previous sessions. The pair is widely expected to peak to its resistance soon but there are huge concerns for the pair. It is also believed that the pair would have a massive chance for a bearish reversal once it reaches its resistance level soon. Yesterday, the European Central Bank decided to leave its official rates unmoved for the month. However, the ECB also said that it’s ready to increase its coronavirus stimulus packages if deemed necessary as the eurozone faces one of its deepest economic crises in records. The bank added that it has ease lending conditions for commercial banks. Moreover, the potential of the Canadian dollar to turn things around for the pair has increased as oil prices continue to recover in the market. This could mean well for the loonie in the coming sessions as it’s highly volatile to the commodity market.
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