Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
The pair is going on a downtrend this time after rising to multi-month highs in October. Price is now trading lower than the 50-day moving average but above the 200-day moving average, indicating traders are being cautious in picking a trend. The downward trend may not be as strong as the previous uptrend. There’s a lot of movement on the fundamentals from both sides. Over in the eurozone, GDP figures showed the region maintained the same rate of growth as in the second quarter. Also, Germany narrowly avoided a technical recession, with data showing the country’s economy grew 0.1% in the third quarter. Over in Sweden, the central bank ditched Australian bonds over high emissions. Sweden’s Riksbank said that Queensland and Western Australia, as well as Canada’s Alberta, were “not known for good climate work.” According to Riksbank Deputy Governor Martin Floden, the bank would no longer invest in assets from the issuers.
The pair traded in the red in the previous session, marking a possible reversal from its uptrend that started early in November. Over in Hungary, the central bank said it would conduct a review of its inflation-targeting system next year as part of its regular practice. However, the National Bank of Hungary (NBH) said that the current system is still working well. The bank said that the tolerance rate around its 3% inflation target introduced in March 2015 has worked and is able to rein in the uncertainties related to measuring inflation. Meanwhile, the country’s GDP has recorded an annual 5.0% in the third quarter, according to the Central Statistical Office. The growth rate sped up from 4.9% in the second quarter. Finance Minister Mihaly Vargas noted that the country’s third-quarter GDP growth was well over the 1.4% average for European Union member states. According to him, the growth was supported by government boosting employment and others.
The pair recently converged with the 50-day moving average, trading down and seemingly reversing its uptrend. For this pair, the primary driver of movement was the economic report coming from Poland. Data showed that GPD moderated below 4%, with consumer spending the main driver of rate. It failed to accelerate as households built some precautionary savings. Among European Union countries, Poland recorded the strongest quarter-on-quarter growth. It clocked in a 1.3% increase or more than four times the EU average of 0.3% increase. For comparison, Germany had a 0.1% growth while the United Kingdom reported 0.3%. Germany and the UK both have sidestepped a technical recession after they both posted negative figures during the previous quarter. Poland and its economy have been labeled a miracle after continuing to beat the expectations of many economists and forecasters.
The pair is still trading within its ranges, trading above and below the 50-day moving average in recent sessions. The pair is now on a downward slope, nearing the 200-day moving average which will also likely act as a support line for the price to reverse back up. The South African rand is trading higher across the board thanks to international news headlines, although domestic news and situations can still weigh on the currency. The rand moved higher against other currencies after China was reported to remove restrictions on imports of US poultry. Afterward, the rand further strengthened after the Federal Reserve Chairman Jerome Powell told Congress that the central bank’s current stance of holding rates is “likely to remain appropriate.” This is so as long as the economy grows moderately, and the labor market remains strong. The rand’s movement will track the headlines and developments in the international markets.