Daily Market Charts and Analysis October 14, 2020

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

NZDJPY

The renewed optimism from investors will increase the demand for the New Zealand dollar. New Zealand not only beat the coronavirus once but twice. This success reflects in the country’s electronic retail card sales MoM report, which increased from -7.9% in August to 5.4% last month. Meanwhile, the YoY report saw the similar trend after it jumped to 7.3% from the previous report of 0.8%. Also, the country will be heading in an election this coming Saturday, October 17. The incumbent PM, Jacinda Ardern, is currently leading the poll. Among her economic agenda was raising tax for people earning NZ$180,000.00 per month from 33.0% to 39.0%. The result will be an additional revenue for the government. Just like New Zealand, the Japanese economy is also starting to recover. However, the record-breaking stimulus of $1 trillion resulted in a weaker Japanese yen. Money supply M3 was at a record high of 1,915.2 trillion yen.

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USDHKD

The increasing dependency of Hong Kong to mainland China will undermine the country’s sovereignty. This, in turn, will drive away companies who have headquarters in the financial hub. Aside from this, the rise of the Greater Bay in China challenges Hong Kong as one of the world’s financial center in Asia. Chief Executive Carrie Lam recently postponed her annual policy address to meet with Chinese President Xi Jinping. The meeting will focus on China’s intervention in Hong Kong’s economy. As mainland China continues to increase its influence over Hong Kong, the US is expected to pull American companies in the special administrative region. Not only will this isolate China but will also support American’s economy. The US is slowly recovering from the pandemic with its CPI and Core CPI recording 1.4% and 1.7% figures, respectively. CPI improved by 0.1% while Core CPI failed to meet expectations by 0.1%.

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USDSGD

Singapore ended the third quarter of the fiscal year with a 35.4% growth QoQ. However, investors are still not pleased with this figure as this represents a -7.0% growth on its YoY report. The main culprit in the weakness in Singapore’s economy was the global lockdown which disrupted the trade industry. The trade reliant economy of Singapore had an import of $359.0 billion in 2019 while exports was around $390.76 billion. Analysts are expecting further weakness in the imports and exports businesses in the remaining months of the fiscal year. On the other hand, investors are continuously increasing their holdings on the US dollar. This was despite the slow recovery of the American economy. However, both investor and analysts believe that the continued intervention of the US government and the Fed will bear fruit in medium to long-term. The total stimulus injected in the local economy was $6 trillion while a pending $2.2 trillion stimulus is on its way.

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EURDKK

Germany is dragging the eurozone lower following its disappointing Consumer Price Index YoY report. Figure came in at -0.2% which is in line with analysts’ expectations. However, this number was lower than the zero percent growth it had for Augusts’ report. Aside from that, the prices of consumer goods fell to its lowest level since August 2009 where it posted -0.5% decline. On the other hand, Denmark saw its figure for the same report climbing up to 0.6% from 0.5% in the previous month. This was the highest recorded figure for the report since the Europe became the center of the pandemic. Investors should brace for more uncertainty following the recent outlook by the International Monetary Fund in the EU economy. According to the financial institution, the eurozone will contract by 8.3% this 2020, the biggest decline since the Global Depression of the 1930s. In addition, the IMF is expecting the group to experience slower recovery in 2021.

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