The pair failed to breakout from a key resistance line, sending the pair lower. Switzerland will attend the Group of 20 (G20) Summit for the first time in November 2020. The country was ranked 20th on the largest economy in the world. Switzerland was known for being neutral on global issues. It was not a member of the European Union despite being located at the heart of the bloc. Aside from this, it was only on September 2002 that the country joined the United Nations. The UN was formed in 1945. The single currency is under pressure in today’s trading session as the bloc is set to release several reports. Investors and traders are looking forward for the European Union’s GDP report. Last month, Germany dodged a possible recession after it recorded expansion. Despite this, several reports from the EU’s largest economy were still in red. The largest trading bloc is also set to report its employment change today, December 05.
EUR/GBP
The pair is expected to continue its downward movement in the following days toward its 32-month low. The single currency is more pressured than the British pound as the United Kingdom is set to have its general election a week from today. On December 12, Britons will decide whether the Conservative Party will continue its reign under UK Prime Minister Boris Johnson. The snap election was approved by the UK Parliament after they forced Johnson to send a letter to European Commission President Jean-Claude Junker to ask for a Brexit extension. The United Kingdom is now set to leave the EU on January 31. However, if Boris Johnson wins the election, analysts were expecting him to drag the UK out of the EU without a deal and leave earlier than the agreed date. This might trigger a nationalist movement across the European Union and further divide the bloc.
EUR/JPY
The pair will bounce back from a key support line, sending the pair higher to retest a major resistance line. The Japanese Yen is expected to weaken in the following days following the announcement by the country that it is preparing a $230 billion stimulus package. This is expected to cause a slump in the value of Yen. Aside from this, the country’s ultra-negative rate is not helping its currency either. On the recent report, figures showed that Japan’s exports dropped the most in three (3) years as trade war bites. On the other hand, the European Union is preparing to get out of the negative territory before the year ends. This was despite most of the economies preferring to cut their interest rates to weigh down the global economic uncertainty and offset the effect of the U.S.-China trade war. Switzerland, the country with the lowest interest rate in the world, announced that it will be moving to the positive territory by 2020.
USD/CAD
The pair failed to breakout from a major resistance line, sending the pair lower towards a key support line. The United States is losing its economic and military might. In the Middle East, Russian President Vladimir Putin is licking U.S. wounds following U.S. military withdrawal in Syria. The move was seen by analysts as a win for Russia and Turkey. On the other hand, U.S. President Donald Trump’s trade war against China failed to bring down its trade deficit with the country. On the contrary, it is hurting the American economy. China pulled out its soybean imports from the United States affecting millions of people in agriculture. Chinese telecom giant Huawei is also moving its Research and Development center to Canada. The strength of the Canadian dollar is expected to continue as the Bank of Canada (BoC) kept its interest rates on hold. Meanwhile, the Federal Reserve is seen cutting its interest rate before the year ends.
