Daily Market Charts and Analysis July 25, 2019

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

EURCAD

The pair has fallen steeply in the past weeks, with prices staying under the 50-day and 200-day moving averages, indicating further bearish moves in the near future. The euro has broadly weakened, sticking to two-month lows as bearish traders await announcement from an expectedly dovish European Central Bank. The meeting of the ECB is widely expected to signal monetary easing as growth in the Eurozone becomes turbulent. Data on Wednesday showed that Germany’s manufacturing sector contracted at the fastest pace in seven years. French business also unexpectedly faltered, which then caused European bond yields to decline. Meanwhile, the strength in the Canadian dollar, which is the best-performing G20 currency so far in 2019, is seen pushing the Bank of Canada to tag along with its peers in cutting interest rates. A stronger loonie could mean more expensive goods from Canada to international markets.

NZDJPY

The pair traded lower in the week after the NZD apparently weakened against the safe-haven yen. The pair is trading below the 200-day MA and above the 50-day MA, suggesting a pretty ranged trading sessions in the near future. Meanwhile, RBNZ is expected to cut Official Cash Rate (OCR) at least two times before the year ends. If the labor market gets any weaker, that is. The guidance came from Westpac, which is a bank that has previously forecasted only one further cut in the OCR in August due to the bleaker global economic outlook. Now, it expects the RBNZ to cut OCR to 1.25% in August and 1% in November. This is an entirely possible scenario given the “race to the bottom” that is happening right now among major central banks around the world. New employment figures and wages numbers are set to be released next week for the three months that ended in June.

USDHKD

The US dollar remains stronger against its peers, including the Hong Kong dollar, despite the likely Federal Reserve interest rate cut. The dollar will probably have more room to rally thanks to the wide anticipation of further weakening among other currencies, particularly in Europe. Meanwhile, in Hong Kong, the Hong Kong Monetary Authority will likely see Eddie Yue to be the next chief at the central bank, according to local reports. Yue is a deputy at the central bank overseeing management. He will take over after Norman Chan, his predecessor, retires at the end of September. Yue will be tasked with defensing the Hong Kong dollar’s peg to the greenback, to which the city’s stability has depended since 1983.  The peg is important now as protests against a proposed extradition bill heighten in the most serious political crisis since the city returned to Chinese news.

USDSGD

The pair recovered most of its losses the previous day today, after rising to monthly highs the session before last. It’s now trading just above the 50-day moving average line, which is not quite far from the 200-day MA. This indicates a semi-bullish short-term outlook, although the pair could probably turn bearish should it break and stay below any of the moving averages. The Singaporean dollar is widely considered to be bogged down by expectations of easier monetary policies. There are roughly three months to go before Singapore is set to adjust its monetary policy, but traders and markets are already expecting it to ease up. Recent economic data been much worse than expected, and the future outlook has also been worsened with the ongoing trade war. Such disruptive events hurt the export-reliant economy of Singapore. The Monetary Authority of Singapore may be compelled to act sooner than later.