Daily Market Charts and Analysis November 05, 2020

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

AUDCHF

The Australian economy celebrated its first weekend with no coronavirus cases, but it looks like the Aussie dollar can’t celebrate with it. The Reserve Bank of Australia has cut the official interest rate down to 0.10 percent, marking its first major move since it began sinking into an official recession. The cut was down from the 0.25 percent rate cut seen in the beginning of its recession in March. The central bank also announced that it will purchase AU$100 billion of five to ten-year government bonds over the next six months to help its economy face its high unemployment. As the pair’s 50-day moving average begins to descend towards its 200-day moving average, the Aussie dollar is projected to move its relatively stagnant Swiss franc opposite in near-term trading. Investors are projected to keep an eye on the Swiss financial minister’s pledge not to raise taxes next year to support its economy throughout its own health crisis.

GBPJPY

The lack of progress in the Brexit agreement between the European Union and the United Kingdom is projected to pull investors away from the sterling in the near-term. Uncertainty around a possible deal between the rivaling economies will drive bearish markets back to the stirring wheel, especially for relatively risk-sensitive currencies like the UK’s. The pair’s 50-day moving average is narrowing its gap towards its 200-day moving average. The latter has been below the former only for two months – the pair is now likely to experience a volatile bearish market as analysts remain increasingly optimistic about the Japanese economy seen in the quarter between July and September, a figure that could increase by 18.4 percent after it had contracted by 28.1 percent between April and June, which was its worst performance since the end of World War II. Its government cash handouts will likely be the biggest contributor to its increase. 

CADJPY

The Canadian government is holding back on its outlook for the next four years while it waits for the United States to wrap up its presidential elections. International affairs specialist at the University of Waterloo claims that Trump may want to declare victory before all votes are counted, expecting the country’s allies to send in their congratulations. If Canada refuses to comment before the official announcement and Trump does win, markets worry that the Canadian economy will have to suffer for withholding its comment on the elections. If Biden does end up winning, markets claim Trump might take the fight to the US Supreme Court. The lose-lose situation is projected to pull the loonie low against its safer counterparts such as the Japanese yen, as the pair’s 50-day moving average begins to fall towards its 200-day moving average sooner or later. Asia’s quicker recovery from Covid-19 is projected to help the yen to increase, as well.

GBPCHF

The impending Brexit deadline is likely to be the driver of the Sterling’s trend against its rival currencies. The European Union’s chief negotiator is blaming London for the lack of progress seen in both parties involving the rudimentary agreement. Michel Barnier confirmed that he was worried that a no-deal Brexit will be more likely than not. His comment had dampened any optimism as both economies’ fisheries rights grow more uncertain, which now serves as a turnaround from his earlier comment that both economies should be willing to compromise to reach an agreement. The pair’s 50-day moving average remains below its 200-day moving average, showing signs that the pair may continue a volatile track upwards as the agreement remains rocky in the near-term. Meanwhile, Switzerland is projected to hold out from initiating a nationwide lockdown despite having more total coronavirus cases than the United Kingdom.