Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
Surprisingly enough, Victoria, Australia’s costly coronavirus surge isn’t projected to push its currency lower than others. This is because the euro has been waving over markets’ attention to its own currency. The European Central Bank has been warning against buying the single currency, and it looks like the market would follow until the bank finally announces its inflation predictions for the rest of the year. Moreover, it’s safe to assume that a possible interest rate cut could scare investors away from trying to profit with the euro. The pair’s 50-day moving average is still trading sideways and below its 200-day moving average as of late, which means that bullish traders have been complacent in where the exchange has been placed.
The European Central Bank has been warning investors not to overinflate its currency, and it looks like the warning could barely help. ECB is projected to prove the effects of its surging currency with a series of announcements later today with the possibility of an altered interest rate looming over its market. Depending on how it predicts its inflation rate, the euro is projected to continue its path upwards against the greenback near-term. The euro has risen by 6% against the dollar since June, and its 50-day moving average is still reaching upward, way beyond its 200-day counterpart. Investors are worried that the Federal Reserve’s shift in focus to end-year inflation rates could be the cause of the greenback’s further fall. Although for now USD investors are merely turning their heads toward its stock market near-term, proven by recent falls in major indices such as the S&P 500 and the tech-based index Nasdaq Composite.
Japan’s Chief Cabinet Secretary Yoshihide Suga is the frontrunner to become the next prime minister. After its longest-serving prime minister steps down, Suga is seemingly determined to keep up the Abenomics economic rejuvenation policy. It looks like investors are optimistic about the retention of Abe’s plan to end his country’s two-decade stagnation and back into thriving growth. Markets are also feeling the effects of a lifted business sentiment to its highest year-to-date. The increase was the fourth consecutive month in a row, which means that even if the number did inch lower for the next record, markets expect it not to have much of an effect on the safe haven yen. Against the Japanese yen, the greenback’s 50-day moving average has been sliding well below its 200-day counterpart, which means that even as the US economy improves, it’s less likely that the exchange pair would go up anytime soon.
The Reserve Bank of New Zealand expanded its bond purchase program to NZ$100 billion from the previous NZ$60 billion package previously. It also extended the deadline for its purchase to two years from now. Although the central bank left its interest rate down at its record low of 0.25%, it also confirmed that it wouldn’t be opposed to lowering it in the near future. The dovish tone is projected to lower the New Zealand dollar against the loonie, especially after Canada announced its first day of being free from coronavirus. The pair’s 50-day moving average dropped in late August when the Canadian economy saw better progress in recovering from its domestic outbreak, which then brought itself nearer the 200-day moving average. The exchange is projected to trade relatively sideways thanks to the resiliency of both economies, but it wouldn’t be enough for the kiwi as uncertainty continues to wash over its future.