Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.
The GBPCAD pair is within a tight range after the pound’s plummet against the Canadian currency as the Middle East tensions mount. Oil prices collapsed last Friday as international trade tensions took the spotlight from the attacks on oil tankers in the Gulf of Oman. The Canadian dollar was weakened by the worsened trade tensions in the Middle East and Hong Kong, while also suffering from the retaliatory trade tariffs on US goods. Middle East tensions were exacerbated as OPEC de-facto leader Saudi Arabia joined forces with the United States in blaming Iran for the aforementioned attacks. As for the pound side, the royal currency was muted against the commodity currency as fears of a no-deal Brexit rise. Brexit is also being blamed for the projected further slide in business investment this year. On the charts, the 50-day moving average appears poised to converge with the 200-day moving average.
The pair is still trading within the channel established early in early, moving cautiously upward after testing the lower line. The Danish krone was affected by the recent Denmark inflation data, which showed that producer price inflation slipped to the weakest level in two-and-a-half years in May. This was according to the data released by Statistics Denmark. Producer price inflation index lost 0.4% year-on-year in May after it showcased a 1.2% rise in April. This is recorded as the lowest rate since October 2016, in which the producer prices declined 0.8%. Domestic market prices rose 1.7% in May, following a 3.5% rise during the previous month. Meanwhile, foreign market prices lost 23.0%, after a 0.9% decrease. All these are good reasons for the dollar to drag the Danish krone upwards the USDDKK charts, which could see the pair touch a higher low before reversing back upwards.
The pair is creeping slowly upwards, continuing a recovery from last month’s slump and testing a resistance level. Though the British pound still lacks some solid demand, it still rose against the New Zealand dollar because of the broad weakness on the side of the kiwi. The pound’s strength hasn’t changed much over the past few weeks, with the UK economic data still coming in mixed, implying that the economy is as uncertain as the Brexit, which is seen dampening the economic activity in the country. Fears for a no-deal Brexit still looms large in the market. Meanwhile, geopolitical and trade factors like the attacks on oil tankers at the Gulf of Oman and the US-China trade war sent the New Zealand dollar tumbling. The NZD is a trade-correlated currency in a trade-heavy country, meaning the slump in the NZD could be expected to continue.
The pair has just seen the golden cross appear, and this is, as everyone knows, a long-term bullish indicator. The pair had rallied much in the months that followed the golden crossover posted on July 11, 2018. The golden crossover right now roars a loud bullish call as an ascending triangle appeared. The developments on the technical side are undeniably bullish, too, for the US dollar. The US-China trade war has undoubtedly dampened the appeal of the Chinese currency, bringing concerns over slowing economic growth on both sides. This has resulted to fluctuations in the value of the offshore yuan. Meanwhile, some leading indicators like the purchasing managers’ index provided some reasonable hint that the Chinese economy may be stable in the longer run. Still, what appears on the chart remains a huge fuel for traders to keep buying the US dollar against the Chinese offshore yuan.