Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
The pair pared some of its previous losses in the recent trading sessions, but it appears struggling to break above the middle band of the trading channel. But there’s a possibility that the price will rise above this level in the next sessions. For fundamentals, analysts are trimming forecasts for the New Zealand dollar as it stays near multi-year lows. This comes on the backdrop of escalating trade wars and collapsing interest rates. Over in Canada, a senior bank of Canada officials recently said that the escalating trade conflicts and other related uncertainties are taking a toll to the Canadian economy. Deputy governor Lawrence Schembri said that the economy has recovered from a soft patch, although the economic data shows some areas of concern. Last Wednesday, the BOC kept its key interest rate target on hold. However, it said that it was keeping a watchful eye on the status of the global economy.
The pair managed a huge spike in the previous two sessions, paring back its weekly losses and breaking above the 50-day moving average, with still a lot of room for the upside, although it may tumble a bit before pulling up again. Over in the Britain, the UK Parliament voted to rule out a no-deal Brexit, rejecting Prime Minister Boris Johnson, who said that a general election was the country’s only way out of a political crisis. In a vote of 327 to 299, lawmakers favored a law that will compel the prime minister to ask for an extension of the Brexit deadline from the European Union if he has not hammered out a deal with EU leaders. The current deadline is on October 31, and the markets are expecting not to easily pass through the UK Parliament. Johnson said that there “must now be an election on Tuesday 15 October.” The British Prime Minister has pledged that he would take UK out of the EU on the deadline “come what may.”
The pair still down-trending, with the currencies facing heavy pressure. Still, traders appear to be propping the pair a mini rebound in the short-term at least. It is trading below the 50-day and 200-day moving averages, indicating generally bearish sentiment prevailing among traders. The eurozone area retail trade volume slipped 0.6% in July month-on-month, according to the European Union’s statistical office. Eurostat emphasized that the figure also recorded a 0.5% drop in the EU28 in the same period. Meanwhile the eurozone says that the retail sales figure was no cause for alarm. The services PMI was revised upwards of August as the consumption outlook remains decent. That’s because the latest data maintained a solid trend in July and the August services PMI picked up again. The day’s final reading was slightly better than the initial one, causing a small move upwards from July’s 53.2 to 53.5 in August.
The pair is still trading in tight ranges, with the price going above both the 200- and 50-day moving average, meaning traders are a little optimistic regarding the performance of the pair. The Hong Kong dollar has gotten a boost after news that Hong Kong Leader Carrie Lam was scraping the controversial extradition bill that triggered a wave of protests in the city. It answered to a key demand of the protesters, who have been protesting for three months now. But in spite of the pulling out the extradition law, the activists pledged that they would press on with their campaign. Pro-democracy protesters voiced out anger and determination to press with the broader democracy goals, which include demands for independent inquiry into alleged police brutality, amnesty for those who have been arrested, and a retraction of classifying protesters as rioters. Another important demand was for Hong Kongers to be able to elect their own leaders.