Market News and Charts for September 20, 2021
Hey traders! Below are the latest forex chart updates for Monday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
EUR/GBP
The pair will continue to move lower in the coming sessions with a target price of 0.83000. Most economic data from the UK in recent days disappointed the GBP traders. On September 16, Britain released the final result for July car registrations. The figure fell to its lowest level since May 2021 with -44.8% month-on-month. The Thursday report is also below the initial readings of -33.8% decline. Meanwhile, the annualized data came at -22.0%. The YoY number is better compared to the preliminary data of -29.5%. Also, retail sales on September 17 failed to beat all forecasts. The monthly figure in August declined by -0.9%, while year-on-year is zero percent. The projections were -2.8% and 1.9%. Meanwhile, the core retail sales are -1.2% and -0.9%. Despite this, the UK inflation expectations soared to 2.7%. The increase ended seven consecutive months of decline. A higher inflation reading could add pressure for the UK central bank to tighten its monetary policies.
EUR/JPY
The pair will reverse to the upside to retest its previous high of around 134.000. The Eurozone’s CPI data increases bullish projection for the single currency. The August headline inflation came in line with the preliminary readings of 3.0% year-on-year and a monthly figure of 0.4%. The YoY result pushed the consumer price index (CPI) to a 13-year high since the 2008 financial crisis. Meanwhile, Core CPI came at 1.6% and 0.3%. As for July reports, the adjusted Current Account report fell an inch lower to 21.6 billion from 21.8 billion previously. As for the n.s.a., the numbers jumped to 30.2 billion from 24.0 billion. On Monday, Germany will release its Producers Price Index for August. The monthly projection is 0.8%, while the annualized forecast is 11.4%. The previous records were 1.9% and 10.4%. On the other hand, the September 29 LDP election remains the catalyst for the Japanese yen. Most of the candidates support the BOJ’s accommodative policy.
USD/CAD
The pair will retest an 11-year high of 1.34000 in the coming sessions. The initial jobless claims retreated on September 16 after hitting a pandemic low of 310,00 in the prior week. The result was 332,000 against expectations of 330,000. On the other hand, the individuals who passed the initial screening fell. The continuing jobless claims logged 2.7 million Americans, suggesting that the people who lost their jobs were not due to economic reasons. For the report, the forecast was 2.8 million, while the previous record was 2.9 million. Another report is retail sales. Analysts were expecting a decline for August of -0.8% month-on-month due to a covid scare. Instead, the US published a 0.7% increase. The Core Retail Sales has the same scenario, posting a 1.0% jump from a contraction of -1.0% in July. In economic news, the FDA approved boosters only for high-risk individuals. The US government hopes for broader application. Also, all eyes are on Evergrande.
NZD/USD
The pair failed to break out from a downtrend resistance line. Economic data from New Zealand shows a slowing economic activity in the previous months. The August Business PMI fell into a contraction as the 3-week lockdown dented corporate operations. The figure came at 40.1 points from the previous 62.6 points. In the same month, credit card spending fell by -6.3% YoY. The result is the first time in six months that electronic spending did not grow. As for the third-quarter Westpac Consumer Sentiment, the index inched lower to 102.7 points. The number represents the lowest data in four quarters. Meanwhile, a recent report showed the NZ economy expanding by 2.7% in Q2 2021. The figure beat estimates by the Reserve Bank of New Zealand at 0.7% and the analysts’ forecast of 1.13% growth. However, investors will weigh the most recent results rather than the second-quarter GDP data. The target price for the pair in the short term is around 0.67200.
