Daily Market Charts and Analysis October 01, 2020

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

EURTRY

Manufacturing PMIs are in focus in the eurozone today. Spain, Italy, and France are all expected to report improving activity for the corresponding sector during the month of September even as its economies experienced a surge in coronavirus cases. More importantly, Germany might meet a 4-point increase for the figure, as well. The announcement will come soon after the European Central Bank Christine Lagarde hinted at a strategy overhaul for its economic aid, which helped bullish investors lift the euro up. Moreover, the pair’s 50-day moving average is still moving diagonally upwards, which is way above its 200-day average. On the other hand, Turkey is looking at more long-term growth, but it anticipates that its inflation rate will drop by more than 10 percent by the end of the year, and then 8 percent in 2021. Worries over its end-year government budget deficit to GDP will also benefit risk aversion near-term.

GBPAUD

Australia enjoyed a record rally on its stock market yesterday. The 5872.9-point rally was its strongest advance since the fourth quarter in 2015. The increase is projected to bleed into the market’s preference for the Aussie dollar. Investors also seem to be optimistic over the Morrison government’s call to focus on its manufacturing sector and pump up the gas on its businesses that were affected by its coronavirus outbreak. The pair’s 50-day moving average just touched its current levels, which means that the exchange is preparing to break through its near-term support or resistance level. Even as its 200-day moving average arches low into its counterpart, it looks like Pound-Aussie could still move down to levels last seen in early September. The UK had just reported its lowest gross domestic product in 65 years for the previous quarter, which is receiving mixed reactions from the market. In the meantime, markets await Brexit-EU results.

GBPCAD

It turns out that the market has been more pessimistic over its gross domestic product figures than it should be. Not only did the City report a lower economic contraction held in the second quarter than they anticipated both on an annual and quarterly basis, but the Bank of England also expects the same figure to erase the losses in the third quarter as well. If this persists, it means that its economy would contract by 3-4 percent below its pre-coronavirus levels instead of 18 percent projected earlier this year. Both the pair’s 50-day moving average and 200-day moving average have touched the pair’s recent levels, which could mean that the pair’s trend will change soon. It’s more likely that it would repeat its August to September rally soon as Canada scrambles to flatten its recent coronavirus resurgence, which had spiked in populous cities. Recently implemented restrictions are projected to slow down its economy and leave investors rooting for the pound.

USDDKK

The United States is in its final month before its Presidential election. The dollar is projected to benefit over the market’s expectations of better employment figures as a result of the Federal Reserve’s effort to shift its focus on inflation over business aid. Initial jobless claims are projected to fall to 850 thousand for this week, which would be a decrease from last week’s surprising increase to 870 thousand. Moreover, its ISM Manufacturing PMI is projected to lift from 56.0 to 56.4, signaling growth in the respective sector and the overall economy with it. The pair’s 50-day moving average is creeping upwards at the dollar recovers in the forex market with risk aversion, which is also why the 200-day moving average has been creeping further downwards as of late. The pair is projected to test an increase that meets June’s support levels, resulting in the bulls locking into the greenback’s increase against the Danish krone.