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Market News and Charts for December 10, 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!

CAD/JPY

The pair bounced back from an uptrend support line, sending the pair higher. Japan’s economy is heating following several reports supporting evidences that the country’s economic growth is slowing. Japan’s Producer Price Index and Consumer Price        Index, on monthly and yearly bases, failed to tap analysts’ expectations. An increase in prices will lead to higher inflation. At the current economic state of Japan, its inflation was below its target. This means that growth is also stagnant. To stir economic activity, the Japanese government recently announced an economic stimulus of $121 billion. This is expected to weaken the Japanese yen in the short-term. If the quantitative easing (QE) failed to materialize, the value of the yen is expected to plunge in the long-term. On the other hand, the Bank of Canada (BoC) was still buoying amid economic uncertainty. The BoC is one (1) of the few central banks that are still holding onto their current interest rates.

FinanceBrokerage - Market News CADJPY ChartGBP/CHF

The pair is expected to breakout from an uptrend channel resistance line. With only three (3) days remaining before the UK Election, demand for the British pound is surging. Political analysts were looking forward for the Conservative Party to win the majority seats in the UK Parliament. Recent poll suggests that Prime Minister Boris Johnson might win this election with a lead of 42.9% compared to Labour Party’s 33%. If the PM was reelected, he can trigger a no-deal Brexit and crash out of the EU earlier than the January 31, 2020 deadline. This, in turn, will benefit countries who signed post-Brexit trade agreement with the United Kingdom. Britain also released several reports today, December 10, supporting a resilient UK economy. The country’s gross domestic product (GDP) were flat, which was a better reading than the -0.2% forecast. Switzerland is a pro-Brexit signatory and will benefit from the withdrawal of the UK from the EU.

FinanceBrokerage - Market News EURAUD Chart

EUR/AUD

The pair is expected to drop towards the uptrend channel support line. For the third quarter, France’s Non-Farm Payrolls (NFP) report showed slower job creation. Figures showed an increase in job creation at 0.2% compared to the 0.3% result from the second quarter. On the other hand, the German economic sentiment rose for the second time since April 2018. The increase was seen by analysts as a result of the largest European economy dodging a possible recession last month. However, the UK general election on December 12 and second round of tariffs by the US to Chinese exports on December 15 will affect the German economy. A greener European Union is affecting its relationship with Australia. The largest trading bloc is demanding Australia to cut its carbon emissions. However, this might trigger a slowdown in Australia. This demand is expected to make Australia to turn away from the EU and move closer to the United Kingdom.

NZD/CAD

The pair is expected to breakout from a key resistance line, sending the pair higher toward its six (6)-month low. New Zealand is forecasting a lower debt for the second half of 2019. This was amid the better readings on the country’s economy. Aside from this, investors and traders might shrug off data if they turned out negative for the New Zealand dollar. This was amid the shift in New Zealand’s measurement of growth from gross domestic product (GDP) to Human Wellness Index. Representative of New Zealand and the United States met at the end of November to discuss trade talks. The possible bilateral trade agreement will be an addition to the bilateral trade agreement that the country has with the European Union and with the United Kingdom once it officially withdraws from the EU. Canada, on the other hand, is still struggling with the ratified NAFTA (North American Free Trade Agreement) still not approved by the US Congress.

FinanceBrokerage - Market News NZDCAD Chart



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