Daily Market Charts and Analysis July 1, 2019

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Charts

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

Charts

GBPNZD

The British pound appears to be trying to have a pullback, although it was still down and outside the upward trading channel it established on the daily chart. The New Zealand dollar was stronger after traders cheered for the thaw in US-China trade relations. The markets cautiously expected good news, with sentiments getting better after China’s President Xi Jinping and US President Donald Trump agreed to a truce in the trade war and returned to trade negotiations. Meanwhile, on the Brexit side, business groups have been angered over the Jeremy Hunt’s statement that he would willingly tell people whose companies went belly up after a no-deal Brexit that their sacrifice had been necessary. This was an escalation on Hunt’s rhetoric, who is trailing Boris Johnson in the Conservative leadership election. He said that he would actively pursue a no-deal Brexit if a new departure plan looked impossible by the start of October.

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USDCNH

The pair exhibited price gap right on the 200-day moving average line on the daily chart, amid the backdrop of a trade truce agreed upon by the US and China. The offshore yuan reached its strongest level against the US dollar, showing a gap-down start at the beginning of the week’s session in Asia. On the other hand, mixed headlines from Chinese news outlets over the US-China trade truce and the sluggish results of the Caixin Manufacturing Purchasing Managers’ Index (PMI) started the pair’s up-moves. The Caixin Manufacturing PMI for June declined to five-month low of 49.4, lower than the 50.00 forecasts. A reading that’s lower than 50.00 indicates that there’s a contraction in the activity. This is the second time this happened so far in the year. Traders would be the wiser to await further developments to be certain of the pair’s near-term movements.

Charts

USDTRY

The pair is creeping down the charts as the Turkish lira stood son some firm ground against the dollar, following Turkish President Tayyip Erdogan’s statement that he had heard from US President Donald Trump, who reportedly said there would be no sanctions over Turkey’s purchases of Russian S-400 defense systems. The two countries have previously been at odds after the S-400 purchase. The conflict put pressure on the lira, pushing to lows. Recently, reports said that Erdogan expects the first delivery of the first S-400s would take place within 10 days. The Turkish president also said he believed the dispute would be overcome “without a problem”. Both the US and Turkey are allies in the North Atlantic Treaty Organization. Investors have previously sold the Turkish currency after news reports that the US had drawn together measures against the country, such as barring its defense firms from the US financial systems.

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EURNZD

The Eurozone is absorbing today’s purchasing managers’ index releases, with the data leaving much to be desired will all of the four biggest economies in the zone, namely Spain, Italy, France, and Germany. Although it crept up slightly in June, Germany’s manufacturing PMI was still well inside the contraction territory. The sector continues to suffer amid the global trade tensions. France, meanwhile, posted figures in the contraction territory, with weaker external demand on order books weighing down on both employment and output. Meanwhile, the New Zealand dollar is seeing some possible boost from forward-looking economic indicators for the New Zealand economy, although the main driver for the NZD still remains the trade truce between the US and China. Overall, the EURNZD pair is set to trade within tight rangers for the next sessions until a solid development scores the headlines.

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