Despite the increasingly alarming weak results in Canada’s economic performance, USDCAD bears are steadfast to drag the pair lower in sessions. Earlier this week, Statistics Canada issued its monthly GDP report showing contraction after the Canadian central bank left its interest rate unmoved. Canada’s gross domestic product contracted to -0.1% from 0.1% on a month-over-month basis in December. Experts were greatly disappointed because prior to this week, Canada’s economy already pumped out a series of poor results. Yesterday’s plunge gave bearish traders the push they needed to stir the USDCAD further down and it currently sits on its monthly lows as of today. The pair is widely expected to reach its support levels by the first week of January. However, it is doubted whether the bears will have enough strength to pull the pair past its support levels as trade war tensions start cooling down and the agreement is set to be signed in early January. December 27, 2019
After hitting its two-year lows earlier this month, EURGBP exerted maximum effort to pull the pair back up in sessions. The steep dive and climb in mid-December were brought by nonother than the UK elections, which caused the pair the pound to surge and plunge shortly after. Euro traders used that as leverage to reel the pair higher but then the pound seems to be fighting back this holiday season. EURGBP bears are harnessing strength from the gradual improvements in the United Kingdom’s economic performance. Just recently, the UK Office for National Statistics released the annual and quarterly GDP results showing improvements against expectations of retainment. The UK gross domestic product growth ticked up to 1.1% from 1.0% on a year-over-year basis, surprising experts who forecasted that it will remain at 1.0%. Meanwhile, on a quarterly scale, the UK GDP also rose by 0.1% from 0.3% to 0.4%.
The odds are working well in favor of AUDJPY bulls in trading sessions, the pair is bound to climb up to its resistance by next week or early January. The reason why? Of course, the protracted trade war between Washington and Beijing that is set finally has its “phase one” deal after months of feuding. The Australian dollar is greatly benefiting due to its close ties to China, the Asian powerhouse. Meanwhile, the Japanese yen’s safe-haven appeal is slowly eroding as concerns for a destructive global economic slowdown start to ease along with tensions between the United States and China. Looking at the bigger picture, the better-than-expected results from Japan’s economic performance are brushed off by the increasing optimism for trade deal prospects. This means that the impressive Japanese CPI growth and unemployment rate aren’t working well as traders would wish to buoy the Japanese yen against the Australian dollar.
The strong results from New Zealand’s gross domestic product growth for the third quarter of the year set the momentum for NZDUSD bulls for an uphill run. Traders are looking forward to kickstarting 2020 in positive territories. The pair continues to gain altitude in today’s trading and is widely expected to maintain its upward pace until early January despite the improving conditions in the US-China trade war. Recently, Statistics New Zealand issued the quarterly GDP report which showed remarkable improvement as it grows from 0.1% in the second quarter to 0.7% from July to September. Meanwhile, the week figures from the US economy will, of course, not be enough to prop the US dollar against the New Zealand dollar. Earlier this week, the pressure kept piling on the buck after poor November new home sales, durable goods orders, and core durable goods orders reports were released.