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The Australian dollar is poised to slowly lose its power against the safe-haven currency, the Swiss franc. The pair should fall to its support level in the first half of November as bears gradually advance. The positive results recorded by the Swiss economy is helping the Swiss franc steadily gain against the Aussie. Investors were pleased with the recent results from the September unemployment rate which reportedly dropped down from 3.3% to 3.2%, surprising the market as experts initially predicted that it will remain unmoved. Aside from that, the decision of the Reserve Bank of Australia to leave its official interest rates unchanged at about 0.25% this October should also slow down to the speed of the antipodean currency. On the other hand, the Morrison government’s plan to deliver an unprecedented tac cut for millions of Australian citizens should weaken the slowly weaken the Australian dollar, allowing the franc to finally maneuver.
The British pound gathers strength from Brexit related hopes and brushes the negative sentiment from the recent reports about the United Kingdom’s economic activities. As of today, the trading pair is seen neutral in sessions, but it is forecasted that bulls would eventually force the tides to their favor. Earlier today, Britain’s Office for National Statistics reported that the UK monthly manufacturing production for August plunged from 6.9% to around 0.7%, falling even more drastically than prior expectations of about 3.0%. Investors are truly alarmed by the state of the economy but are hopeful that the United Kingdom and the European Union could settle their differences to finally agree on a Brexit deal. Meanwhile, the Japanese yen is also weighed by the recent monthly household spending for August. yesterday, it was reported that Japan’s household spending report improved from -6.5% to 1.7% but failed to meet expectations of 3.2%.
Unfortunately for the Japanese yen, the negative sentiment from Canada’s economic activities isn’t enough to help bearish investors of the CADJPY trading pair to take over. Looking at it, the Canadian dollar is fueled by the optimism in the crude oil market and the hopes for a stimulus package for the US economy. The main factors that hold back the Canadian loonie right now are the bearish comments from the Bank of Canada’s governor and the recent decline in the country’s housing starts report for September. Yesterday, the Canadian Mortgage and Housing Corporation reported that the housing start figures dropped from 261.5K to just about 209.0K, falling even lower than initial expectations of around 240.0K. And for today, bulls are bracing themselves as they wait for the results of the country’s September employment change and unemployment rate due to later this Friday. The September employment change is expected to fall from 245.8K to just around 156.6K, suggesting that the economic recovery is slowing down.
The negative figures recorded by the United Kingdom’s economy has slowed down the British pound this Friday. It appears that the sterling will end its week on a rather negative note. Fortunately for bullish investors, the trading pair is still widely projected to climb up in the coming weeks as Brexit hopes keep it afloat in sessions. Earlier today, it was reported that Britain’s monthly gross domestic product dropped from 6.4% to about 2.1%, weighing in on the sterling’s rally today. Looking at the bigger picture, it’s evident that the pound sterling is among the best-performing currencies last month, gaining against most major currencies in the foreign exchange market. However, the safe-haven attraction of the Swiss franc is making it harder for bulls to gain much traction thanks to the still-ongoing Brexit woes. But according to the European Council head Charles Michel, the UK and EU have now reached their “moment of truth”.