Charts and Market Updates October 31, 2019

Charts and Market Updates October 31, 2019

Good day traders! Check now the most recent charts and market updates for today’s session. Learn more about analysis and be updated on the current happenings in the market!

USDCZK

The US dollar will continue to fall against the Czech Koruna after a string of unfortunate news weighs on the greenback. First, the US Federal Reserve announced that it will be slashing its interest rates by 25 basis points to reach the central bank’s target of at least 1.50% to 1.75%. Thursday’s rate cut announcement is the third slash from the US Fed this 2019. The USD immediately faltered after the news. Also, the US Core PCE price index for Month-over-Month basis came out flat, disappointing experts who forecasted a growth of 0.1%. The slash from the US Fed looks likely in favor to Czech policy makers who have previously spoken in favor for rate hikes for their country’s central bank. Czech Central Bank Governor Jiri Rusnok commented that Czech Republic’s economy is still far from a recession and is properly balancing the foreign and local factors.

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EURJPY

Traders expect the Japanese yen to overpower the single currency in coming sessions as the yen receives support from news about the Bank of Japan and Japanese household data. Today, the monetary policy makers in the Japanese central bank decided to hold on to its current rates. With a majority win of 8-1, the BOJ chooses to hold on to its ammunitions for now. However, the Japanese central bank still left the floor open for possible cuts in the futures. The BOJ decided to keep its short-term rate target at -0.1% and its 10-year government bond yields at just 0%. Meanwhile, the Eurozone traders are still confident that the euro will not fall too badly against the yen as the market digests the flat outcomes from reports in the region. The Eurozone unemployment rate for the month was released today and according to the report, the bloc’s unemployment remains at 7.5%, upsetting expectations of a 7.4% decrease.

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GBPCAD

The Canadian dollar is in deep waters as the Canadian gross domestic product report (MoM) showed that Ottawa’s economic growth for October slowed down by 0.1%, failing to reach expectations of 0.2% by experts. The country’s industrial product price index (MoM), which measures the changes in domestic products, also went down to 0.1% from its previous reading of 0.2%. The Bank of Canada also left its benchmark rate at 1.75% and clashed its expected outlook growth for the economy in 2020, this disappointed CAD traders who were becoming less confident for the loonie. Meanwhile, the Bank of England said this Thursday it would not give the full in-dept details on the health of the United Kingdom’s economy in its quarterly inflation report. Traders are now waiting for the bank’s next update about the economy on November 7. The BOC painted a negative picture on its monetary policy, placing the CAD on its backfoot.

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AUDNZD

The US Federal Reserve’s decision to cut its interest rates gave the Reserve Bank of Australia a problem. The surprise increase in building approvals boost the confidence in the Australian economy and the Australian dollar in previous sessions, however, the RBA’s efforts to hold its currency down were pushed aside by the Fed’s rate cut. Aussie traders are taking in the Fed rate cut’s effect to the AUD. However, traders doubt whether the pair would break through its support as mixed data from the ANZ NZ weighs on the New Zealand dollar. The kiwi also faces danger against news about China’s October NBS manufacturing purchasing managers index which decline below 49.8, well below forecasts of 49.3. The Chinese data could hurt both the AUD and the NZD, however, kiwi traders appear more confident that the New Zealand dollar will stand against the Australian dollar.

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