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The Euro failed to break through resistance on Wednesday which has resulted in the recent downward swing. After the Bank of Canada’s Senior Deputy Governor Carolyn’s rather dovish speech, the loonie became weaker. After that, traders were expecting BoC Governor Stephen Poloz to give another dovish hint, however, he didn’t. The BoC governor’s speech gave the Canadian dollar a one day boost yesterday against the Euro. Unfortunately, the loonie wasn’t able to continue its win as the euro starts to steady in sessions. The EURCAD pair is testing resistance but is bound to break pass eventually. It is expected that the pair will continue to inch upward. The upbeat result from the German GDP report is buoying the euro. Berlin’s gross domestic product for the third quarter of the year came in at 1.0% from the second quarter’s slow growth of 0.3%. It also went past projections of 0.5%.
Even if the single currency and its futures are holding steady, it won’t be enough to cause the EURRUB to flatline in sessions. Good news for the Russian economy came when growth was reported to have doubled, all thanks to strategic spending. Moscow’s economy expanded by 2.2% in October compared with its reading the previous year. The country’s Finance Minister Anton Siluanov said that it was all due to the wise national projects launched by Russian President Vladimir Putin. The 67-year-old president launched 13 projects that cover healthcare, education, and infrastructures. For Putin’s fourth six-year seat in power, he plans to push Russia’s economic growth beyond the world average six years from now, 2025. The Russian President’s plan will cost around 26 trillion rubles or 406 billion US dollars. However, it is still unclear whether the government will shoulder all the costs or get private investors.
The British pound sterling’s strength is slowly faltering as it fails to reach consecutive gains against the Australian dollar in trading sessions. Since July, the British pound had a good run against the dollar and has later formed support level wherein it hasn’t really breached yet. The upsetting Manufacturing and Services PMI of the United Kingdom has resulted in the pair’s current downward run. Although the pound still remains as one of the top-performing currencies in the past few months, and it is expected that it will continue to gradually push upward. The Australian dollar, on the other hand, is enjoying the short-term weakness of the pound sterling in sessions. But the highly risk-sensitive currency is still having a really tough time trying to pull the GBPAUD pair lower against all the mixed headlines regarding the US-China trade conflict. Beijing reportedly invited Washington officials for a face-to-face talk on December 15.
The GBPCHF pair is expected to continue current levels and reach its support levels soon. It is feared that the GBPCHF would continue to trade around ranges between 1.2600 to 1.2800 because the longer it stays there, the harder will it be to breakthrough. Actually, both currencies are struggling to push each other. The Swiss franc is weighed by the lower trade surplus and the sterling isn’t expected to have another breakout soon as the weaker than expected UK Manufacturing and Services Purchasing Managers’ Index also weigh on it. The UK Manufacturing PMI came in lower than forecasts of 48.8% contraction which jumped down from 49.6% to 48.3% in the recent report. The figures went even lower from the 50-percent-mark that separates contraction and expansion. Meanwhile, the UK Services PMI also didn’t meet projected figures of 50.1% growth and has tumbled down from 50.0% to just 48.6%.