Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
Online spending in New Zealand was up 4.0% in April. Meanwhile, the annualized data showed a 108.71% jump in electronic card retail sales last month compared to the same month in 2020. On the other hand, business and economic activity in Canada is expected to slow down. This was due to the disappointing employment numbers on Friday, May 07. In April, there were 207,100 individuals who lost their job. The same trend was seen in its neighbor, the US, which created 266,000 jobs against 978,000 estimates. The high unemployment record in Canada represents 8.1% of the country’s workforce. Meanwhile, there were 77,800 part-timers who lost their job despite the economic recovery in Ottawa. As for the technical, the 200-day and 50-day moving averages formed a “bearish crossover” on May 03, which added pessimism among investors. The MACD line and Signal line also extended their downward movement along with the Histogram.
The British pound will experience weakness in sessions as investors digest the Q1 2021 GDP data. On the first three (3) months of the year, the UK economy contracted by -1.5%, which is better-than-feared with estimates of -1.6%. Also, the decline is less severe when compared to the EU’s largest economy’s decline. Germany contracted by -1.7% during the same period. As for the year-over-year number, the GDP was still down by -6.1% but better than Q4’s -7.3% result. Other key economic data also posted upbeat results. Industrial production in March flipped its -3.3% decline with 3.6% growth in March. The same scenario happens with the manufacturing production which came in at 4.8% against the prior month’s decline to -4.2%. Investors are expected to shift in riskier but more profitable assets. The GBPUSD pair will fail to advance from its February 24 high and break down from the 50-day MA at 1.38704 to reach the target price on the 200 MA at 1.34758.
Germany was able to post consumer price index (CPI) data that is in line with the ECB’s inflation target. The reported number for April is 2.0%. However, the EU’s second-largest economy, France, failed to top the 1.3% CPI estimate after posting 1.2% figure. Another report from the Eurozone which missed guidance was industrial production. The March data advanced by 10.9% while analysts were expecting an 11.8% growth. While short-term results disappoint investors, hopes remain for the near to long-term economic advancement. The collective economic growth of the 27-member bloc is expected to reach 4.2% in fiscal 2021 with higher GDP increase seen next year at 4.4%. The previous forecasts were 3.7% and 3.9%, respectively. France is expected to lead the recovery at 5.7% in 2021 while a slowdown in expected in 2022 at 4.2%. The MACD is pointing for a quick recovery, but the 50 MA is expected to prevent a full recovery in prices.
The Coincident Indicator and Leading Index in Japan showed positive data for the month of March. Figures came in at 3.2% and 4.3%, respectively, which were major improvements from their previous results of -1.7% and 0.6%. However, most recent figures for April were saying otherwise. Current account is down to 1.70 trillion yen, bank lending has slowed down with the 4.8% May 12 result, and smart money leaving the Japanese equities and bonds market with a net of 144.8 billion and -73.6 billion, respectively. The Economy Watchers Current Index also slipped to 39.1 points, a 9.9 points decline from March’s result. Other concerns by investors on the world’s third-largest economy is the rising COVID-19 cases, which is now on the fourth wave of the pandemic. Analysts are expecting the Tokyo Olympics on July 23 to be delayed again. The MACD and Signal Lines formed a “bearish crossover, but the 50-day MA is expected to prevent a decline in prices.