Market News and Charts for December 03, 2019
Hey traders! Below are the latest forex chart updates for Tuesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The pair is expected to bounce back from a major support line, sending the pair higher. South Africa is set to release reports for its gross domestic product (GDP) on a Quarter-over-Quarter (QoQ) and Year-over-Year (YoY) basis. Using its recent reports, analysts were expecting the African nation to grow slower than the previous quarter. For the first quarter of 2019, South Africa have a -3.1% growth compared to -1.7% that analysts were expecting. The second quarter saw an improvement at 3.1% growth. However, this only offset the result it had on Q1. The pessimism among ZAR traders is expected to further send the pair higher in the following sessions. The narrowing relationship between the United States and South Africa is also expected to influence the pair. The recent months saw the U.S. foreign direct investment (FDI) to South Africa pulling out their money. This was amid the economy’s high exposure to China.
The pair is trading sideways and is expected to hit support line in the next five (5) days. Recent reports were pointing to a greater cooperation between Russia and China in technology. This has a huge implication to American investors as Russia was accused of meddling during the 2016 U.S. Presidential Election. Russian state actors were known for spying ability while Chinese state actors were known for their cyber espionage skills. This could further drag the already weakening U.S. military. Aside from this, the U.S. led NATO (North Atlantic Treaty Organization) were falling apart with disagreements from the Germano-Franco and the eastern Europe. Russia had also launched the Eurasian Economic Union, which was aimed at competing with the European Union, to boost its economy. Russia was also able to secure approval from China and Denmark, an EU member state, to build gas pipelines in their respective territories.
The pair will bounce back to hit its resistance line in the following days. Switzerland’s Consumer Price Index (CPI) hit its lowest level since the beginning of 2017. This declining data is expected to continue as the country is set to release its CPI report on a yearly basis. Despite this, investors were optimistic about the upcoming meeting of the Swiss National Bank. In November, the central bank gave hint about the possibility that the country might step out of its ultra-loose monetary policy. Switzerland has the lowest interest rate in the world at -0.75%. It is also one (1) of the only four (4) countries that are in negative territory. On the contrary, the United States is expected to continue cutting its interest rates in the following months. This was amid pressure from U.S. President Donald Trump to country’s rate to negative. The Federal Reserves already cut interest rate three (3) times this year to 1.75%.
The pair will fail to breakout from a major resistance line, sending the pair lower. The United Kingdom Construction Purchasing Managers Index (PMI) report is expected to continue its contractionary result today, December 03. This was amid the declining trend on the report since the beginning of the second half of the year. The report will come just ten (10) days before the United Kingdom is set to vote on a snap election announced by UK Prime Minister Boris Johnson. The election came amid the humiliating defeat of his government to secure a Brexit deal from the UK Parliament and/or his failure to get the UK out of the EU without a deal. The uncertainty surrounding the Brexit gets further complicated with the visit by U.S. President Donald Trump in London. His visit to the United Kingdom surrounds around the possible bilateral trade agreement between the two (2) countries and 70th NATO founding anniversary.