Forex Daily Recap – UK GDP Declined, Pushing GBP to Multi-Year Lows

The Chinese Yuan pair continued to stay sustained within a multi-month uptrend channel. Canadian currency slipped following disappointing Jobs data thereby allowing the Loonie pair to climb fresh heights.
Nikhil Khandelwal
United Kingdom Five, Ten and Twenty Pound Notes

GBP/USD

Cable continued to travel below the zero-line of the MACD, luring the sellers. The investor sentiment dropped significantly in the backdrop of downbeat UK economic data releases. The ongoing Brexit chaos seemed to have an impact over the UK’s economy.

GBPUSD 1 Day 09 August 2019

Notably, the UK Q2 GDP remained at the top of the trader’s daily event watchlist. The market had already forecasted the GDP figures to decline by 0.5% this time and report near 0.0%. Somehow, the actual GDP statistics came around -0.2%, shocking the market participants. Moreover, the June Manufacturing Production and Industrial Production data also published adverse reports. Despite that, the UK PM Boris Johnson remained stubborn over exiting UK irrespective of attaining a deal for a Brexit.

USD/CNY

The Chinese Yuan pair continued to stay sustained within a multi-month uptrend channel. Quite noticeably, the MACD line had already crossed above the signal line at the start of August, favoring the bulls. Meantime, RSI stood near 81.03 overbought levels. At any point, this overbought RSI could have played its role in dragging down the pair. Anyhow, such a detrimental act has not taken place yet.

USDCNY 1 Day 09 August 2019

On the other hand, the Chinese economic docket showcased mixed data releases throughout the day. The July YoY Consumer Price Index (CPI) jumped 0.1% this time over the market hopes of around 2.7%. Also, the MoM CPI reported 0.4% in comparison to the 0.2% estimates. Somehow, the Chinese July YoY Producer Price Index (PPI) displayed -0.3% over -0.1% forecasts, pouring cold water on the pair’s daily positive drifts.

USD/CHF

After testing the overhead red Ichimoku Clouds earlier this month, the bears had taken control over the pair’s daily price actions. Even today, the pair extended the previous day’s downward rally, hovering near 0.9733 level.

USDCHF 1 Day 09 August 2019

Anyhow, a stable 0.9694 support handle stood on the downside in order to cover up any potential losses. The base line and the conversion line of the Ichimoku Clouds were making rounds above the USD/CHF pair, encouraging the bears. At around 05:45 GMT, the July MoM Switzerland Unemployment Rate s.a. came in-line with the previous as well as the consensus estimate, recording 2.3%.

USD/CAD

Canadian currency slipped following disappointing Jobs data thereby allowing the Loonie pair to climb fresh heights.

USDCAD 1 Day 09 August 2019

The July Net Change in Employment reported -24.2K over +12.5K street estimates. Also, the July Unemployment Rate rose 0.2% this time in comparison to the last 5.5%. Even the June MoM Building Permits came around -3.7% over +1.5% forecast. In the meanwhile, the July YoY Average Hourly Wages soared 0.9% over the last recorded 3.6%. Anyhow, the USD/CAD pair appeared to shrug over this upbeat data and refocused on the downbeat ones.

USD/ZAR

The Rand pair geared up on Friday, escalating towards the 1:1 Gann line, developing strong positive price actions. The RSI has crossed the 70 overbought benchmark, touching 76 mark, cheering up the bulls. Such a healthy upliftment in the pair came following abrupt growth in the Chinese Yuan.

USDZAR 1 Day 09 August 2019

South Africa relies highly on China for its Exports and Foreign Investment activities. Therefore, South African Rand currency remains highly correlated with the performance of the Chinese Yuan. With full ammunition intact, the USD/ZAR pair breached above the sturdy 15.1912 resistance that was restricting the upside since last few sessions.

 

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US