Daily Market Charts and Analysis July 30, 2019

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

USDRON

The pair traded on two-month highs and is still treading above the charts, with the dollar strengthening much against the Romanian leu. It trades above the 50-day and 200-day moving averages on the daily chart, indicating a bullish front-month trend. The 50-day MA is above the 200-day MA, the formation of which indicates a bullish trend too. The pair should meet resistance line soon and could possible trigger a retracement. Recently, Romanian central bank BNR maintained its refinancing rate at 2.5%. It also kept the interest paid for overnight deposit facility at 1.5%. This comes in spite of the rising inflation. Central bank governor Mugur Isarescu said that the interest rate was high enough given the recent strengthening of the leu. The dollar, meanwhile, held on to its two-month highs ahead of the widely expected interest rate cuts by the Federal Reserve, the US central bank.

EURNOK

The EURNOK pair is trading lower on the daily charts, with the price level recently going down to two-month lows but eventually recovering some losses. It now trades just below the converging 50- and 200-day MA lines, with the 50-day MA signaling a probably death cross formation, which generally indicates bearish signals. The euro weakened recently after Trump renewed criticisms toward the European Central Bank, saying that the bank was deliberately low-balling the currency to aid Eurozone exporters take a bigger slice of the export markets. A relatively weaker euro makes European products more competitive in foreign exchange markets. Meanwhile, the Norwegian economy showed a higher three-month growth in the mainland economy, according to a report. Mainland Norway’s gross domestic product (GDP) increased 0.3% from April to May and 0.7% from March to May.

EURRUB

The pair trades on a downtrend, with the two currencies fluctuating and retracing various steps. As of recent movements, the pair may be up for a retracement. The ECB recently signaled for a September rate cut, with ECB President Mario Draghi saying that they would do “whatever it takes” to fight a fall in inflation expectations when he delivered a speech during the bank’s annual gathering recently in Sintra, Portugal. There have been divided expectations as to whether the ECB wants to pre-empt a policy move by the US Federal Reserve that weakens the dollar and strengthens the euro, since this would hurt Eurozone exporters and weigh on inflation even more. Meanwhile, Russia’s central bank has decreased its borrowing cost by 25 basis points to 7.25%. The bank cited slowing down inflation amid much-softened economic activities alongside other temporary factors like trade tensions along the Gulf and some South American nations.

USDMXN

The pair traded in tight ranges since early June. It traded below both the 50-day moving average and the 200-day moving average, indicating that the pair might continue trading in the lower parts of the charts in the absence of a large catalyst. On the Mexican side, President Andres Manuel Lopez Obrador said that he would prefer the Mexican central bank to not only focus on controlling inflation but also think about the growth in Latin America’s second-biggest economy. Previously, the Mexican central bank said that cautious monetary policy was needed, citing mixed signals on inflation amid growing expectations for major banks to cut interest rates. We can expect the Bank of Mexico to cut rates because of dropping inflation and lackluster economic growth. The president, on the other hand, reiterated that he respected the independence of the Bank of Mexico.