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!
USD/HUF
The pair is expected to continue moving higher in the following days. Following a closer tie between the United States and Hungary, the latter is once again shifting its diplomatic policy from pro-U.S. to pro-EU. This was following the visit of European Commission President Ursula von der Leyen on the V4 nations before her inauguration. Hungarian Foreign Affairs and Trade Minister Péter Szijjártó said Chinese telecom giant Huawei will be involved in the rollout of the country’s 5G network. This was amid warning from the United States on Chinese espionage. Aside from this, another V4 nation could potentially host the regional hub of Huawei and further open Europe from China. In addition to this, Hungary blocked George Soros-backed Central European University. Soros is a Hungarian-American investor and philanthropist. In other news, the U.S. is set to release November’s Purchasing Managers Index (PMI) report.
USD/MXN
The pair will move higher after it broke out from a major support line. Mexico and Canada trade officials recently met to discuss the ratified USMCA (United States-Mexico-Canada) following the comments by Nancy Pelosi. The speaker of the House of Representative said that the U.S. Congress is hoping to pass the new NAFTA (North American Free Trade Agreement) before the year ends. This gave hope among investors that the division in the congress might help the U.S. to open its economy despite the “America First” policy by President Donald Trump. This can also be a catalyst for the reelection bid of Trump for the 2020 U.S. Presidential Election. During the height of U.S.-China trade war, the U.S. farmers suffered from the reduced soybean import of China from America. The USMCA is expected to increase the demand for American soybean and lift the U.S. agricultural industry.
USD/NOK
The pair is expected to breakout from a major resistance line, sending the pair higher to reach its all-time high. The United States was able to secure its position in the Arctic region after Norway had its first operational F-35 fighter jets. The U.S.-made jet is the most advanced fighter jet that the U.S. has ever made. Other NATO (North Atlantic Treaty Organization) also possess the fighter jet along with the THAAD (Terminal High Altitude Area Defense) defense system. The move by the United States was timely as Russia tries to expand its reach in the Arctic. The U.S., Russia, Norway, Canada, and Denmark (Greenland is part of the Danish Realm) were all major claimants in the Arctic region. The climate change had caused the region’s ice to melt at a fast pace, which created a new region that can be used to dominate the northernmost part of the world. The purchase of the F-35 increases the demand of the U.S. dollar in Norway.
USD/PLN
The pair will continue to move higher and breakout from an uptrend channel’s middle resistance line. Poland was finally admitted to the U.S. Visa Waiver Program following the increased cooperation between Poland and the United States. Poland is hosting U.S. military bases and has been the recipient of the U.S.-made F-35 fighter jets and THAAD (Terminal High Altitude Area Defense). This was following the fallout of the U.S.-Turkey relations. U.S. President Donald Trump had began militarizing the eastern bloc with the increasing Russian economic and military influence in the Eastern Europe. However, the decision to strengthen the eastern bloc was not well-received by Turkey. The country is NATO (North Atlantic Treaty Organization) Alliance’s second biggest military force. Turkish President Recep Tayyip Erdogan was the only member to refuse to back the defense plan in the eastern bloc.
