Daily Market Charts and Analysis November 25, 2020

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

GBP/CAD

Investors shrugged off the rising cases of COVID-19 in Canada amid its promising outlook for ADP Nonfarm Employment Change in the coming months. On Monday, November 23, Canada had the biggest single-day increase in new cases at 7,052. This has sent the total cases in the country above 340,000. Despite this threat, the government has been trying to reduce the impact of the coronavirus pandemic by creating more jobs. On Thursday, November 19, there were almost 80,000 individuals who became unemployed. However, this number is already a major improvement from the previous month’s report of 564,000. Furthermore, consumer consumption continues to improve. The retail sales inched higher to1.1% in September from 0.4% in the prior month. The 50 and 200 moving averages are flat which signals the formation of a trading range. Meanwhile, the MACD is bound to crossover.

USD/DKK

The upbeat data from the US Manufacturing and Services PMI coupled with positive expectations for the initial jobless claims report will send the pair higher. The figures for these reports were 56.7 points and 57.7 points for purchasing managers index (PMI) and 730,000 claimants for initial jobless claims. The number of people filing for their unemployment benefits last week was 742,000. The US is also set to report the final result for its Q3 GDP QoQ with expectations of 32.3% against Q2’s final result of -31.4%. On the other hand, the continuous rise of COVID-19 cases in Europe resulted in lower spending by consumers. Consumer confidence for the month of November dropped anew to -7.6 points from -6.2 points. The USD/DKK pair is expected to break out of the 50 MA to meet the 200 moving average at the 6.50000 level.

GBP/NZD

New Zealand joined the RCEP (Regional Comprehensive Economic Partnership), the world’s newest and largest trading bloc. On the other hand, the United Kingdom is leaving the second-largest trading bloc in the world, the European Union. Despite the UK having its own freedom to sign free trade agreements (FTA) with other countries, it still loses access to the single market which can be problematic as the region faces the resurgence of COVID-19. Meanwhile, the RCEP is not aiming to become the United States of Europe. Instead, the bloc will focus primarily on trade as the world moves toward protectionism. As for New Zealand’s economic data, retail sales surged by 28.0 percent in Q3 from a decline of -14.6% in the second quarter. The pair is trading below the 200 and 50 moving averages. Crossover in MACD is expected to fail.

USDCNH

The world’s largest economy, the United States, is being left behind. The ASEAN Plus Six (excluding India) formed the world’s largest trading bloc, the RCEP. The Regional Comprehensive Economic Partnership covers a third of the global economy and the global population. The second and third-largest economies, China and Japan, were included in the group as well as the Asian Tigers – South Korea and Singapore. It also includes Australia and New Zealand whose economies are deeply tied to the west. Analysts argue that the pandemic and the formation of the new trading bloc will only accelerate China’s growth to dethrone the US as the largest economy in the world. In relation to this, analysts expect that China will be the only advanced economy to expand this 2020 by 1.6% while the global economy will shrink by 4.5%. The “Death Cross” will push the USDCNH pair lower despite the bullish MACD.