Daily Market Charts and Analysis September 07, 2020

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

EURCHF

In a meeting held only hours ago, Switzerland’s visiting foreign minister promised all-out efforts to improve his bilateral relations and international dialogue with Iran. The three-day trip took place to discuss ways to help Iran avoid sanctions from the United States and boost its food and medicine revenue. Of course, this should boost the Swiss franc, but today’s fiscal situation presents a complicated problem for its opposite – the European Central Bank found that the euro currency is in a bullish crisis. The bullish market is still determined to keep the pair’s 50-day moving average above its 200-day moving average that it even went through a slight uptick since the announcement. Although the pair is going through a volatile sideways market, the euro is likely to inflate even further until the ECB implements plans to prevent long-term economic damage driven by the strong euro within the week starting with an announcement to be held on Thursday.

EURGBP

The final phase of trade talks between Britain and the Eurozone partners will take place this week after 8 months’ worth of delays after it exited on January 31. The trading relationship between the two parties will not change until 2021, and they haven’t been able to agree on almost anything. If its prime minister Boris Johnson doesn’t manage to wrap up negotiations, he might have to leave its current relationship with the EU without a deal. But recent claims that the UK has been successful in outsourcing trade discussions, such as in Japan where they will reportedly sign a new trade deal as soon as next week. The pair’s 50-day moving average has been trading above its 200-day moving average, but now that they’re projected to intersect, bearish investors are expected to take over soon. Besides, the European Central Bank has already raised its concern that the euro might have been overbought after experiencing months-long highs.

EURJPY

The longest-serving prime minister in Japan has resigned. Shinzo Abe’s decision to step down after his near 8-year reign negatively impacted the market with a drop across most Japanese asset classes including the yen, near-term. Its Abenomics program is still being held, but his successor is now under pressure to fill the gap it had created. Investors are uncertain about how any of the candidates would pull it off, citing a possible rate cut from its benchmark rate that could deplete the yen’s appeal. His resignation also raised brows in the domestic market about his not doing enough to make more aggressive movements to assist Japan’s economy with the pandemic’s effect, which had notably pushed the euro currency’s 50-day moving average further above its 200-day moving average. The determiner for the EURJPY’s track this week will be how the market is going to digest its transition from leader to leader, as well as an announcement from the ECB this week.

USDCAD

Despite seeing rocky economic data last week, the Canadian economy is still in recovery. Its national statistics agency announced that its unemployment rate had cut to 10.2% for the month of August, stating an additional 246,000 jobs within the month. That marks two-thirds of the jobs lost since it started initiating nationwide lockdowns in March. Its track upwards will be undeniably rocky, but the pair’s 50-day average is still moving lower than its 200-day moving average, indicating that bearish traders are working to take the pair back into lower levels seen last February. Canada’s gradual improvement is prompted to push the pair lower, considering that its unemployment rate and even its employment change data was better and faster than the market expected for August. The Bank of Canada is also expected to keep its interest rates as it is and may continue to carry its asset purchase program, upping positivity for the CAD.