Daily Market Charts and Technical Analysis August 7, 2019

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

EURTRY

The pair slipped below the 200-day moving average and stayed near an upward slanting resistance line, and is now trading in ranges, although the general direction is downwards. On the euro side, Eurozone banks are looking to get a multi-billion-euro consolation prize if the ECB provides them the expected reprieve from its penalty charge on deposits. On the Turkish lira side, the Central bank of Turkey has announced that lira currency swap transactions would be executed at widened periods. Previously, transactions only had one-week maturities via the quotation method on the Turkish Lira Currency Swap Market. At the same time, the bank raised its reserve requirement rations on foreign currency deposits and participation funds by 100 basis points. These moves are all for supporting the lira, which they try to make more expensive to hold, which is one of the unorthodox methods to lower demand for foreign currency.

GBPAUD

The pair traded higher for the past week, with the price even breaching the 200-day moving average area at one point during the latest session. The price currently sits near the 50-day MA just below the 200-day counterpart. The recent strength of the British currency against the Australian dollar has something to do with decision of the Reserve Bank of New Zealand to cut its official cash rate (OCR) by 50 basis points to 1.0%, a rate cut the bank hasn’t done since March 2011. The Australian dollar’s weakness will probably be a good thing for the Reserve Bank of Australia and other policymakers, since the weaker currency would be making Australian goods more attractive and competitive on the global stage and against imported products. The Aussie dollar slipped down as investors are expecting the RBA to mimic the RBNZ in cutting rates.

GBPCAD

The pair recovered some of its losses in the past couple of sessions, with the British pound apparently strengthening against the loonie. The Bank of England recently pushed back calls to cut interest rates this coming Thursday. That would leave borrowing costs unchanged amid the worsening risk of a no-deal departure from the European Union. There is less than 100 days to go before the country leaves the trading bloc. All nine members of the BOE’s Monetary Policy Committee unanimously voted to hold interest rates at 0.75%. On the Canadian side, the Bank of Canada recently said that it plans to buy back as much as 500 million Canadian dollar worth of bonds from up to nine outstanding issues in a cash management repurchase on August 7. Also, the Canadian dollar also weakened due to the continuously worsening US-China trade war after Beijing let the Chinese yuan slip to its lowest point in more than 10 years.

USDDKK

The pair slumped down, previously trading above both the 50-day and 200-day MAs and nearing the 50-day MA. The pair, however, looks poised to continue the uptrend in the trading channel it established on the daily charts at the start of 2019. The dollar was mostly weaker after the recent retaliation of China by letting the yuan slip below a psychologically important level. It was also adversely affected by US President Donald Trump’s decision to tag China as a “currency manipulator.” Meanwhile, in Denmark, House of Commerce chief executive Liz Jack said that many accommodation providers say they are experiencing a loss in revenue. Jack suggests that the Danish economy could not depend on the increase in tourists every year. Rather, it was more preferable to encourage businesses to find ways to increase the tourism spending. The Denmark Chamber of Commerce is now collecting revenue data from local businesses.