Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
EURDKK
The eurozone lost 5.1 million jobs throughout the pandemic. The previous three months saw employment fall by 2.9 percent, and its official second-quarter GDP figure showed an 11.8 percent decline in the same period. These figures are prompted to push the euro lower against the Danish krone as its 50-day moving average continues to tumble lower than its 200-day moving average counterpart. The European Central Bank had also warned markets about its over inflation in the forex market, which could have been another major driver for its decrease against crown currencies. Consumer price inflation also went lower in August by 0.2 percent, down from the 0.4 increase the month prior. However, it looks like the descent won’t get far – Denmark just surpassed the number of coronavirus infections in the country over Sweden, which could prompt a longer-term weakness for its currency. In the near-term, the euro is projected to fall.
EURTRY
Turkey’s up-and-down relationship with Greece has been causing unwanted tension in the forex market. Even after weeks of conflict between the two countries, it looks like even the announcement that they’re willing to start talks to resolve the issue wouldn’t be enough to ease worries. The EURTRY pair’s 50-day moving average will continue its upward trend after its surge against the 200-day moving average in early August, and it looks like the tables won’t turn until the countries come up with a definite agreement. Meanwhile, the European Central Bank is content with the jumping euro because its president Christine Lagarde postponed her decision on interest rate policies to next week. Moreover, its gross domestic product contracted less than the market expected for the second quarter of 2020 compared to the first quarter. July had seen an 11.8 percent decline, less than the 12.1 percent initially estimated. The notion that the eurozone is improving faster than expected is projected to help the falling lira near-term.
GBPAUD
Total direct Chinese investment to Australia fell by almost AU$2.5 billion in 2019, reported after two Australian journalists fleed China on fears of police detention. China has been one of biggest markets, but it has sought to cut economic exchanges for a while after Canberra barred Huawei Technologies Co from joining the 5G network rollout in the region. Rising trade tensions between the two economies are projected to pull the Aussie dollar away from market sentiment despite its consecutive bearish market in the GBPAUD exchange as of late. The pair’s 50-day moving average stooped lower than its 200-day moving average then, but it looks like the negativity surrounding its geopolitical situaion might take a toll on its currency near-term. The United Kingdom also reported a gross domestic product improvement seen in July, indicating that it had recovered over half of the lost output from the coronavirus outbreak in the City.
GBPCAD
The UK reported a monthly economic uptick of 6.6% in July, in line with the market’s estimates of a 6.7% growth and followed the three-month consecutive growth that started in May. The increases indicated that its economy recovered more than half of what it lost in April, and that UK economists now have more of an opportunity to become optimistic. Capital Economics analyst Thomas Pugh said that even though July’s growth slowed slightly from the 8.7% increase in June, investors could look forward to a record increase in the next three months. The UK’s accommodation and food services activity surged by 140.8% from June and improved overall services output by 6.1%. The data led the pair’s 50-day moving average to cross and inch up its 200-day moving average counterpart, and it looks like the bulls are expected to take over again after the Canadian dollar plummeted the currency in early September.
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